Hi,

I would like to get the answer today please, thank you.

Regards

Angie

1) Describe the key role of the financial system and explain why it is important to the broader economy to have an efficient and effective financial system? 2) Examine the main regulations in Australia and their overseas counterparts, and evaluate the changes that have been implemented post the global financial crisis. 3) Explain what is meant by 'novation', and how it impacts upon risk. Butler's Stationary are a medium sized publicity listed Corporation. They require $2 million to finance their operations for 6 months following setting a large contract with a retailer in Australia, and the Directors have come to your bank to advise them. 1) Explain to the Directors of Butler's Stationary the difference between the Capital market and the money market, and which market the directors should use in financing their operations development and why. 2) Recommend the type of financial instruments that Butler's Stationary could compare for this borrowing. Explain the main features, characteristics, risks and benefits of the financial instrument to the Directors. 3) The Directors compared your recommendation to the bank's short term loan prices and agree with your recommendation. They now seek your opinion in whether the primary or secondary market should be used and whether it is traded on an exchange or not. Explain the difference between the two markets and determine which market would best suit this issue and why? 4) A fund manager and client of your investment bank is interested in investing $500,000, and seeks your advice on the benefits of investing in this issue. Using your recommendation in (question 2) above, advice your client on the benefits and risks associated with such an investment. 5) The Directors of Butler's Stationary have just announced that they will pay a $2 dividend on their preference shares at the end of each year which is worth $42.00. Calculate the required rate of return for the preference shares. 6) The fund manager has invested in Butler's Stationary preference shares, and would like you to explain how risky the investment is, assuming the preference share has a beta of 90 and these are the only equity investments your clients has. 7) Calculate the price of the security that the fund manager will pay, assuming that Butler's Stationary had issued a fixed interest security, with a face value of $2,000,000 and paying 3.68% for 182 days. 8) Exactly one month later, the fund manager decides to exit this investment. Market interest rates have increased during this period. Explain to your client If this has impacted on the investment and whether the fixed interest security is now trading at par, at a discount or at a premium to when it was issued? 9) Distinguish between the two categories of risks in a security, and consider if any can be diversified. Provide at least 2 examples of each category of risk. Pretend you work as a senior office in retail branch of an Australian Bank. Jake who is 16 years of age is visiting the branch on work experience organised by the school. Your manager asked you to explain the process by which Tier 2 products must be offered to clients, include in your response on explanation of: What documentation is required to be produced to the customer and what information each document contains? Which products you as a Tier 2 advice can assist the client with and which products you must refer to other professionals in the bank. Categories of Tier 2 products including examples. A list of Tier 1 products and who can help the client with these. A list of products which are not considered to be financial products according to PSRA and who can help the client with these