JF has opened a savings account, on November 25 he discovered that there are some fraudulent transactions in his account, by analyzing the liability of unauthorized transaction of ETFA it was discovered that he is under risk of unlimited loss. Characters in the case : JF of Oxford, Mississippi. Adequate information: JF has a savings account, experienced some fraudulent transactions. It is required to determine the risk JF has on account of this transactions. ETFA issued gu To determine: The money J would lose because of fraudulent transactions in his account. Introduction: Liability on unauthorized transactions: The Electronic Funds Transfer Act (ETFA) is the governing law, also known as Regulation E, was implemented to protect consumers using electronic means to manage their finances. The financial institution must make sure that customer know their liability in case the card is lost or stolen. The financial institution should provide a phone number for reporting loss and description of its error resolution process and information on customer’s liability and his rights.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 4FPC

Summary Introduction

Case summary: JF has opened a savings account, on November 25 he discovered that there are some fraudulent transactions in his account, by analyzing the liability of unauthorized transaction of ETFA it was discovered that he is under risk of unlimited loss.

Characters in the case : JF of Oxford, Mississippi.

Adequate information: JF has a savings account, experienced some fraudulent transactions. It is required to determine the risk JF has on account of this transactions. ETFA issued gu

To determine: The money J would lose because of fraudulent transactions in his account.

Introduction:

Liability on unauthorized transactions:The Electronic Funds Transfer Act (ETFA) is the governing law, also known as Regulation E, was implemented to protect consumers using electronic means to manage their finances. The financial institution must make sure that customer know their liability in case the card is lost or stolen. The financial institution should provide a phone number for reporting loss and description of its error resolution process and information on customer’s liability and his rights.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

no ai Image is blurr do not answer this question if data is not clear or image is blurr. please comment i will write values but do not amswer with unclear values. i will give unhelpful sure.

Don't solve this question with unclear data. i will give unhelpful rating . please skip this qn

The prodave paint company earned a net profit margin of 20% on revenues of $20m this year. Fixed Capital Investment was $2 m and depreciation was $3 m. Working capital Investment equals 7.5% of the Sales level in that year. Net income, fixed Capital Investment, depreciation, interest expenses and sales are expected to grow at 10% per year for the next 5 years. After 5 years, the growth in sales , net income, depreciation and interest expenses will decline to a stable 5% per year and fixed Capital Investment and depreciation will offset each other. The tax rate is 40% and the prodave has 1 m shares of common stock outstanding and long term debt paying 12.5% interest trading at it's par value of $32 m. The WACC is 17% during the high growth stage and 15% during the stable growth stage. Required: a) Calculate FCFE b) Determine FCFF c) Estimate the value of Equity d) Calculate the value of the Firm