What is meant by a haircut in a collateralization agreement. A company offers to post its own
Question:
What is meant by a "haircut" in a collateralization agreement. A company offers to post its own equity as collateral. How would you respond?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
In a collateralization agreement a haircut refers to the percentage reduction applied to the market ...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...
-
Q1. You have identified a market opportunity for home media players that would cater for older members of the population. Many older people have difficulty in understanding the operating principles...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
If one movie ticket costs $13.50, how much will y tickets cost?
-
Go to the Web page of a major bank such as TD Commercial Banking (www.tdcommercialbanking.com/index.jsp) or Scotiabank (www.scotiabank.com/ca/en/0,4,00.html). How do these banks help corporations to...
-
In Problem evaluate each integral. Graph the region of integration, reverse the order of integration, and then evaluate the integral with the order reversed. 4x (1 + 2y) dy dx
-
German Chocolates Ltd produces blocks of chocolate. Raw materials in the form of cocoa solids, milk and sugar are added at the beginning of the process, flavouring, fruit and nuts are added half-way...
-
Hyper Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2011, the company reported the following operating results while operating at 90%...
-
A ball is launched upward from the ground with an initial velocity of 19 m/s and reaches height above the ground before falling back down. Take the upward direction to be positive. Refer to the...
-
You're very bullish about NVDA and want to initiate a bull spread with the company's stock options. The premium for options that mature in 6 months with OTM calls and OTM puts are as follow: Calls:...
-
A company enters into a 1-year forward contract to sell \(\$ 100\) for AUD150. The contract is initially at the money. In other words, the forward exchange rate is 1.50 . The 1 -year dollar risk-free...
-
How are recovery rates usually defined?
-
Youre the director of the citys Division of Water. Your mail today contains this letter: The salesperson was wrong. You dont provide discounts for pools (or anything else). At current rates, filling...
-
What is the difference between emphasis achieved with mechanical means as opposed to emphasis achieved with stylistic devices?
-
On a trip to the _____________, _____________ visited the Statue of Liberty. a. East Coast, uncle Hans b. East Coast, Uncle Hans c. east coast, uncle Hans For the above sentence, write the correct...
-
One _____________ moving testimony caused the jury _____________ enough doubt to acquit. a. witnesses, members b. witnesss, members c. witnesss, members For the above sentence, write the correct...
-
Twitter may not be the first social media site you consider for posting your rsum. Savvy candidates, however, know that Twitter has one major advantage over more obvious sites such as LinkedIn and...
-
a. The deadline for the project was moved up three days. Which means that our team must work overtime. b. Tyrese supervises shipping, Gabriela manages the Legal Department. c. No stock prices were...
-
What two accounting equalities must be maintained in transaction analysis?
-
The graph of an equation is given. (a) Find the intercepts. (b) Indicate whether the graph is symmetric with respect to the x-axis, the y-axis, or the origin. -3 6 -6 3 x
-
An index is 1,200. The three-month risk-free rate is 3% per annum and the dividend yield over the next three months is 1.2% per annum. The six-month risk-free rate is 3.5% per annum and the dividend...
-
Suppose the current USD/euro exchange rate is 1.2000 dollar per euro. The six month forward exchange rate is 1.1950. The six month USD interest rate is 1% per annum continuously compounded? Estimate...
-
The spot price of oil is $50 per barrel and the cost of storing a barrel of oil for one year is $3, payable at the end of the year. The risk-free interest rate is 5% per annum, continuously...
-
Global Industrial intends to execute a marketing program half a year from now that requires a $ 5 0 0 , 0 0 0 investment. In preparation, the company plans to invest some of its available funds into...
-
When using the four-step process for organizing creative thinking, which step involves ideas beginning to flow?
-
Ramsay Health Care Ltd has recently paid a dividend of $6 and the dividend payments are expected to grow at a constant rate of 11% per year for the next 12 years. The required rate of return for the...
Study smarter with the SolutionInn App