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please do this assignment. this is the Answering the assignment guideline document Banks and Money Markets: At the current market conditions, the interest rates ollered
please do this assignment. this is the Answering the assignment guideline document Banks and Money Markets: At the current market conditions, the interest rates ollered for savings deposits by the bank is at 1.0. APY. For Certiticate of Doposits, the current rate for a 90-day deposit is at 3.0% APY. You also have the option of issuing commercial paper due within 90 days at 1.505, APY. Here is a summary of the presentations: - The first head of department, Mr. Saeed, has been with the company for a long time. He thinks that the company's slock is overvalued and is proposing to hold the excess money in a savings account to accrue interest. He believes that this would be the salest investment. You proposed that putting the money in the money market would be a betier option but he said that he has never done that and doesn think a's's a good idea. - The second head of department, Ms. Nourah, is not as experienced as Mr. Saeed but is excited about the future growth of the company. She disagrees with him and thinks that the stock is undervalued. She is proposing to issue greater dividends to investors. She tells you that, by sharing the profits with the shareholders, the company is doing what is best for them. She also thinks that the stock price will increase and investors will have more confidence in the company. If the company needs to raise money in the future, it can issue stock at a later date. - The third head of department, Ms. Jameela, who recenty joined the company after working at a consulting firm for 10 years disagrees with them both. She thinks that, instead of focusing on the stock market, the company should diversity its investments by beying bonds. She beleves that the bonds found above are exoellent investments and that the company should not miss out on this opportunity. And it the company needs money in the future, it can issue commercial paper. The discussion becomes so heated that you need to intervene. Based on the information provided above, detail the investment strategy that you will approve with appropriate justification for your decision. Keep in mind that you can pick more than one option. Note: You will need to provide an analysis of all the options provided above including your response to each of the department heads with detalled calculations and rationalizations foryour answer. Please refer to the Answering the Assignment Guideline document. Part 3 - Analysis of the Bank and Money Market Opportunities - Give your team's opinion on each of the options described in the case. In your analysis, you will need to detail the benefits and disadvantages of each one of them. Banks and Money Markets: At the current market conditions, the interest rates ollered for savings deposits by the bank is at 1.0. APY. For Certiticate of Doposits, the current rate for a 90-day deposit is at 3.0% APY. You also have the option of issuing commercial paper due within 90 days at 1.505, APY. Here is a summary of the presentations: - The first head of department, Mr. Saeed, has been with the company for a long time. He thinks that the company's slock is overvalued and is proposing to hold the excess money in a savings account to accrue interest. He believes that this would be the salest investment. You proposed that putting the money in the money market would be a betier option but he said that he has never done that and doesn think a's's a good idea. - The second head of department, Ms. Nourah, is not as experienced as Mr. Saeed but is excited about the future growth of the company. She disagrees with him and thinks that the stock is undervalued. She is proposing to issue greater dividends to investors. She tells you that, by sharing the profits with the shareholders, the company is doing what is best for them. She also thinks that the stock price will increase and investors will have more confidence in the company. If the company needs to raise money in the future, it can issue stock at a later date. - The third head of department, Ms. Jameela, who recenty joined the company after working at a consulting firm for 10 years disagrees with them both. She thinks that, instead of focusing on the stock market, the company should diversity its investments by beying bonds. She beleves that the bonds found above are exoellent investments and that the company should not miss out on this opportunity. And it the company needs money in the future, it can issue commercial paper. The discussion becomes so heated that you need to intervene. Based on the information provided above, detail the investment strategy that you will approve with appropriate justification for your decision. Keep in mind that you can pick more than one option. Note: You will need to provide an analysis of all the options provided above including your response to each of the department heads with detalled calculations and rationalizations foryour answer. Please refer to the Answering the Assignment Guideline document. Part 3 - Analysis of the Bank and Money Market Opportunities - Give your team's opinion on each of the options described in the case. In your analysis, you will need to detail the benefits and disadvantages of each one of them
please do this assignment.
this is the Answering the assignment guideline document
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