Top Questions - Financial Review by Finance 3.0 most recent 30 from http://www1.financial-review.com 2010-09-05T10:42:32Z http://www1.financial-review.com/feeds http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://www1.financial-review.com/questions/38/liquidity-risk-management Liquidity Risk Management Financial Review 2010-03-10T05:32:04Z 2010-03-10T05:32:04Z <p>How do you identify liquidity risk, what methodology is used to measure this risk?</p> <p>I'm doing a dissertation on liquidity risk management for financial institutions (banks), so please guide me.</p> http://www1.financial-review.com/questions/37/irr-calculation IRR Calculation rosa zegarra 2010-03-10T04:00:09Z 2010-03-10T04:00:09Z <p>What is the IRR of the following set of cash flows?</p> <p>year | cash flows</p> <p>0 | -19500</p> <p>1 | 9800</p> <p>2 | 10300</p> <p>3 | 8600</p> http://www1.financial-review.com/questions/36/prmia-vs-frm PRMIA vs FRM Financial Review 2010-03-09T23:14:27Z 2010-03-09T23:14:27Z <p>I am considering doing a qualification in risk and I have seen the Professional Risk Manager and Financial Risk Manager Designations. Which one is more beneficial?</p> http://www1.financial-review.com/questions/35/accounting-careers-for-the-non-experienced Accounting Careers for the Non Experienced Financial Review 2010-03-09T23:13:08Z 2010-03-09T23:13:08Z <p>I recently received my Bachelors in Accounting and Finance in Decemeber 2008. I do not and will not have years work experience in the accounting profession right out of college. I really want a career in the accounting field.</p> <p>Entry-level and intern jobs will not even work for me. They all say the same thing. Employers advertise "no experience needed, we will train". When I apply for the job, it turns out I did need at least one year work experience to get an entry-level or intern job. What is the point of requiring applicants to have years work experience for a no work experience job? I thought that was the whole point of entry-level or intern jobs.</p> <p>I have been to interviews before only to be rejected. Employers see my resume as is knowing I do not have years work experience in the accounting profession. Employers view my resume as is and invite me for interviews. Then they reject me for the job offer because I did not have work experience. That is so unfair because they already knew that when I came to the interview. I lack years work experience, but I make up for the skills I learned from school and my past jobs. All non accounting jobs.</p> http://www1.financial-review.com/questions/34/forensic-accounting-careers Forensic Accounting Careers Financial Review 2010-03-09T23:11:08Z 2010-03-09T23:11:08Z <p>How do you start a career in Forensic Accounting without a CPA designation?</p> <p>I have over 15 years accounting experience but I want to explore forensic.</p> http://www1.financial-review.com/questions/33/what-it-takes-to-be-a-good-financial-analyst What It Takes to be a Good Financial Analyst Financial Review 2010-03-09T23:09:05Z 2010-03-09T23:09:05Z <p>Recently i had an interview, where I was asked this question.</p> <p>I said to the interviewer that one should be familiar with the MACRO environment in which the Company operates &amp; use the PESTEL, SWOT, and Porters 5 Forces to assess it; also communicate effectively with the internal stakeholders without any communication laps.</p> <p>What would have been a good answer?</p> http://www1.financial-review.com/questions/32/internal-audit-careers Internal Audit Careers Financial Review 2010-03-09T23:07:15Z 2010-03-09T23:07:15Z <p>Amid the financial crisis, risk management of financial systems appear to be the most important issue facing us in the future.</p> <p>Therefore, I think choosing a career in internal control/internal audit is a rather good idea. Am I correct?</p> http://www1.financial-review.com/questions/31/difference-between-tangible-book-value-per-share-and-tangible-equity-per-share Difference between Tangible Book Value per share and Tangible Equity per Share Financial Review 2010-03-07T07:01:52Z 2010-03-07T07:01:52Z <p>I want to know if there is any difference between Tangible Book Value per share and Tangible Equity per share?</p> http://www1.financial-review.com/questions/30/pension-accounting Pension Accounting Financial Review 2010-03-07T07:01:06Z 2010-03-07T07:01:06Z <p>Could someone please explain the entries that you would make on a company's financial statements to account for a pension plan.</p> <p>I'm particularly confused about the difference between net periodic expense and the economic expense.</p> http://www1.financial-review.com/questions/29/ipo-financing-scenario IPO Financing Scenario Financial Review 2010-03-07T07:00:13Z 2010-03-07T07:00:13Z <p>In two years Mr. A grew A-Foods Limited from a start-up to a $38 million business. At the same time, the stock market had become more interested in investing in small companies. Therefore, Mr. A expected that “going public” would be a good way to raise large sum of money for his new business plans.</p> <p>Mr. A and his managers worked with every possible financing source, from friends and family, to banks and investors. Now they would base their plan on being able to raise millions from both the private and public markets.</p> <p>Mr. A intended to sell stock in the company in a $30 million IPO (initial public offering). Sales that year were well on their way to $58 million, and the business needed the capital to support that volume level. What they did not expect was how much time company managers would need to spend on the fund-raising effort.</p> <p>Then, Mr. A, s financial advisors told him the market no longer had any interest in new “small-cap” IPOs. So the company had to go back private sources for money. Nine months after the IPO that was not A-Foods Limited board, out of cash and out of possibilities for raising cash, filed for bankruptcy.</p> <p>1) How could Mr. A have better used his management team and resources?</p> <p>2) What do you think was responsible for A-Foods Limited downfall?</p> http://www1.financial-review.com/questions/28/inadequacy-of-united-states-securities-and-exchange-commission Inadequacy of united states securities and exchange commission Financial Review 2010-03-07T06:59:00Z 2010-03-07T06:59:00Z <p>Are the reporting standards of the united states securities commission adequate for the purposes of the financial analysis of company annual report?</p> http://www1.financial-review.com/questions/27/capital-markets-efficiency Capital markets efficiency Financial Review 2010-03-07T06:55:14Z 2010-03-07T06:55:14Z <p>Dayton has asked you for advice about his investment portfolio.He is considering buying shares in companies listed on the Alternative Investment Market.</p> <p>Green, a friend of Dayton, has told him he should invest only in shares that are listed on an efficient capital market as otherwise he cannot be sure he is paying a fair price.</p> <p>Dayton has explained to you that he is not sure what an 'efficient' capital market is. </p> <p>a) Explain to Dayton what characteristics are usually required to be present for a capital market to be efficient.</p> <p>b) Discuss whether the Alternative Investment Market is considered to be an efficient market.</p> <p>c) Discuss the extent to which research has shown capital markets to be efficient.</p> http://www1.financial-review.com/questions/26/stock-options-a-source-of-funds Stock Options a Source of Funds? Financial Review 2010-03-07T06:53:29Z 2010-03-07T06:53:29Z <p>When shares are issued it provides funds for a company. Is the same true oe a stock option?</p> http://www1.financial-review.com/questions/25/forward-contracts Forward contracts Financial Review 2010-03-07T06:52:47Z 2010-03-07T06:52:47Z <p>Can you please explain why forward contract can be used for speculating or hedging?</p> http://www1.financial-review.com/questions/24/constant-growth-model Constant Growth Model Financial Review 2010-03-07T06:51:35Z 2010-03-07T06:51:35Z <p>A quick question on the Gordon Growth Model.</p> <p>Terminal value = CF/(R-g)</p> <p>where CF = next year cash flows R = Expected return (discount rate) g = growth</p> <p>This model has been used to calculate the value of the business.</p> <p>Is this the right valuation methodology in calculating the value of the business?</p> http://www1.financial-review.com/questions/23/methods-for-fund-valuation Methods for Fund Valuation Financial Review 2010-03-07T06:50:06Z 2010-03-07T06:50:06Z <p>Is there any method besides Net Asset Value (NAV) for fund valuation?</p> http://www1.financial-review.com/questions/22/denomination-for-us-treasury-strips Denomination for US Treasury STRIPS Financial Review 2010-03-07T06:46:39Z 2010-03-07T06:46:39Z <p>I was doing some research on US Treasury STRIPS program, but I am getting conflicting information on minimum denomination amount for STRIPS.</p> <p>This is what I beleive to be correct: Denomination for Principal Strips are 100 and Coupon Strips are $0.01, can somebody confirm this.</p> http://www1.financial-review.com/questions/21/trade-credit-growth Trade Credit Growth Financial Review 2010-03-07T06:45:34Z 2010-03-07T06:45:34Z <p>What is the impact of trade credit on the growth of small scale businesses, and why is it that producers do not grant trade credit to their customers?</p> http://www1.financial-review.com/questions/20/economic-capital-value-of-oil-gas-company Economic Capital Value of Oil & Gas Company Financial Review 2010-03-07T06:44:29Z 2010-03-07T06:44:29Z <p>How do you determine the economic capital value of an oil and gas company?</p> <p>How often is the usage of P10, P50 and P90 in this case?</p> http://www1.financial-review.com/questions/19/what-are-real-options What are Real Options Financial Review 2010-03-07T06:43:13Z 2010-03-07T06:43:13Z <p>What is the practical behavior of real options?</p> <p>Are they really implemented practically?</p> <p>Unlike tradable options, are these also traded? Can I just say that real options are a better way of valuing than our traditional DCF?</p> http://www1.financial-review.com/questions/18/profit-loss-items Profit & Loss Items Financial Review 2010-03-07T06:41:30Z 2010-03-07T06:41:30Z <p>I am creating an Income Statement/P&amp;L and I have a few questions about few accounts that I'm not sure if they go on the Income Statement.</p> <ol> <li>Does Administrative Wages go in the Income Statment/P&amp;L?</li> <li>Does Interest Income go in the P&amp;L?</li> <li>Does Prepaid Insurance go on P&amp;L?</li> <li>Does Dividend Paid go on P&amp;L?</li> </ol> http://www1.financial-review.com/questions/17/forex-accounting-book-and-management-book Forex Accounting book and Management Book Financial Review 2010-03-07T06:39:02Z 2010-03-07T06:39:02Z <p>For the fiscal year's reporting for financial reporting and management reporting is highlighted and what is most critical point that company needs to pay attention to avoid any high risk?</p> http://www1.financial-review.com/questions/16/cash-flow-forecasting Cash Flow forecasting Financial Review 2010-03-07T06:38:21Z 2010-03-07T06:38:21Z <p>How would you better identify cash drivers within a business to improve Cash Flow Forecasting Practices?</p> http://www1.financial-review.com/questions/15/arbitrage-pricing-theory Arbitrage pricing theory Financial Review 2010-03-07T06:37:21Z 2010-03-07T06:37:21Z <p>Can you throw some light on Arbitrage price theory?</p> http://www1.financial-review.com/questions/14/business-loan-credit-application Business Loan / Credit application Financial Review 2010-03-04T01:50:20Z 2010-03-04T01:50:20Z <p>My assignment is to create a letter to a Bank Manager to get a loan for my small company.</p> <p>This should include an end-of-year report to convince him that my business is viable and credit-worthy. What are the main topics that this report should cover?</p> http://www1.financial-review.com/questions/3/capm-difference-in-stock-returns CAPM - Difference in Stock returns Financial Review 2010-03-03T23:12:08Z 2010-03-04T00:40:54Z <p>Your neighbor is a security analyst. He has conducted his research about some stocks in New York Stock Exchange (NYSE) and his findings are as follows:</p> <p>Stock A will have a return of 18%, stock B will have a return of 20 % and stock C will have a return of 22%, but his findings do not involve the CAPM (Capital Asset Pricing Model).</p> <p>You are a business graduate and when you have used CAPM, you have come to know that: Stock A’s expected return is 15.50%, Stock B’s expected return is 24.63% and Stock C’s expected return is 25.39%.</p> <p>In your opinion, whether the NYSE has over-priced or under-priced each stock and in the light of these results, which of these stocks are suitable for investment?</p> http://www1.financial-review.com/questions/9/how-to-read-quote-for-bonds How to read quote for Bonds Financial Review 2010-03-03T23:33:47Z 2010-03-04T00:39:44Z <p>I came across quotes like the following (CT5+400 or Z-Spread+400 etc) for bonds, can someone help to explain?</p> <hr> <p><em>*</em> PRICE GUIDANCE KOREA US$ 5YR/10YR BENCHMARK</p> <pre><code>Issuer: Republic of Korea (KOREA) Expected Ratings: A2 / A / A+ (Stable / Stable / Negative) Format: Senior Fixed Rate SEC Registered Global Notes Maturity: 5 and 10 years dual tranche Initial guidance: 5yr: CT5+ 400 area (area = +/- 1/8) 10yr: CT10 + 4 3/8 area (area = +/- 1/8) Size: US$ Benchmark Denominations: 100k + 1k Leads: Citi / CS / DB / GS / ML / Samsung Listing: Singapore Timing: To price on Wed NY am </code></pre> <hr> <p>So CT5 here is Korea 5 yrs Govt Bond or US 5 Yr Govt Bond?</p> http://www1.financial-review.com/questions/13/microfinance-for-petty-traders Microfinance for Petty Traders Financial Review 2010-03-04T00:36:47Z 2010-03-04T00:36:47Z <p>I have a dissertation on the impact of microfinance on poor petty traders in developing countries, and i need some literature to read and how to go about it.</p> <p>Pls help me out.</p> http://www1.financial-review.com/questions/12/beta-what-is-high-and-what-is-low Beta - What is High and what is Low Financial Review 2010-03-04T00:34:06Z 2010-03-04T00:34:06Z <p>I think that a beta of 0.7 is low, while others may say that it is high as beta is usually only between -1 and +1.</p> <p>I do not agree with this and think that 0.7 is low and beta can be higher than 1!</p> <p>Am i right or wrong?</p> http://www1.financial-review.com/questions/11/stochastic-frontier-analysis Stochastic Frontier Analysis Financial Review 2010-03-03T23:37:21Z 2010-03-03T23:37:21Z <p>Can any one help me to calculate the cost frontier and profit frontier using stochastic frontier analysis.</p>