The Federal Reserve has increased the interest rates to a range of 0.75% to 1.00%. This has an impact on many of the companies and consumers within the United States. The rise of interest rates impacts mortgage loans, credit card rates, student loans, even the U.S. national debt. To narrow which industry to focus on, my KPMG audit team will focus on the impact this has on our client, VISA, within the credit card industry. Although our client does not extend credit to its consumers, many…
At the beginning of the period, the price of Computers, Inc. divided by the industry index was 0.39; by the end of the period, the ratio had increased to 0.50. As the ratio increased over the period, it appears that Computers, Inc. outperformed other firms in its industry. The overall trend, therefore, indicates relative strength, although some fluctuation existed during the period, with the ratio falling to a low point of 0.33 on day 19. 18. Five day moving averages: Days 1 – 5: (19.63 + 20 +…
different measures of average annual return, the arithmetic and the geometric. The arithmetic average return is the sum of the annual returns over the time period divided by the number of years in the time interval. The geometric average return is the compound average growth rate over the time interval. For example, if the return for a security were - 10% in period I and 30% in period 2, the two averages would be Arithmetic average : Geometric average…
can easy get the loan. The bank will provide a set figure that been requested by the business and they will repay the amount over an agreed period of time. In most case the bank will charge 2 percent over their base rate of interest for loans, the bank can decide on the interest rate being fixed or variable. The rate can be increased by the bank if they think that lending the loan is risky. This is mostly effected for small start-up business as the bank consider them as more uncertain prospect…
A bond is an actual loan to the company, government municipality or federal agency. Bonds promise to pay a certain amount of interest when it matures. According to Chizoba Morah at Investopedia, “Bond prices are affected by changing interest rates and credit ratings.”(Morah, C. p.3) Usually, a bond is considered a long term investment and is held until maturity, which can be five years, ten years or longer. But occasionally an investor…
When it comes to your business, it’s all well and good to have a business name, market research and a business plan, but, what your business needs is some funding to get it going. Where are you going to get this funding? Business funding can come from an array of sources such as: Friends and Family Investors Business Loan Crowdsourcing Which one of these options is best for you? Read on to learn more about each one and how they can help you get your business doors open and stay afloat. Back to…
retiring at the age of 65. I believe I will be alive for 32 years in my retirement. Step 2: With the way things are looking I estimate that I will need $44,000 a year in retirement income. I plan on investing in retirement so I am going to use a 7% interest rate. Step 3: I am not going to include Social Security in my analysis because by the time I will retire I do not believe that Social Security will still exist. Therefore, my answer for Step 3 is 0. Step 4: The job I currently have does not…
the use of credit cards this is unlike the U.S. were consumption patterns are higher and most Americans have double the amount of consumer debt than the average person living in Europe. U.S. commercial banks focus on mortgages because in the U.S. interest can vary and its tracked more depending on the consumer’s credit score and their history of…
6 reasons why Singapore 's Small medium enterprises (SME) take up a business loan It is no secret that the economy is tough. Unemployment rates have put the globe on a huge wheel, and many companies have met an untimely bankruptcy, while some are on the edge of extinction. In today’s continuously fluxing economic climate, the riddle of starting and managing a small business is getting diificult. Nevertheless, the less fainted hearted are still thriving. In fact, it is surprising that some…
led to believe. However, a keen look into the framework of debt consolidation reveals otherwise. Evidently, you will be paying much less installments per month after consolidating your debt and this can be great relief. In debt consolidation, the interest rate is slightly dropped by one percent or two and the repayment period is significantly extended. Obviously, paying for much longer results in smaller installments but staying in debt longer is also…