Problem:
You have just been promoted as the new assistance branch manager of a local based international bank. The branch manager, who is an expatriate, has asked you a question on different types of interest rate quotations. The question he has asked is which rate should the bank advertise on a monthly-compounded loans - the normal annual percentage rate or the effective annual percentage rate? And what rate should the bank advertise on quarterly compounded savings accounts? Explain to the branch manager which quotation would attract consumers and why.
1) What are the 4 major financial statements and briefly describe each statement?
2) Briefly discuss the advantages of raising capital by issuing preferred stock rather than common stock to a company.
3) "It is said that globalization has brought more threats than opportunities"
Within the context of financial management, do you agree or disagree with each statement? Give examples to support your answer.