Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this
You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 3. The same person from before has come to you with another question: "I don't get it. Why is it that when SC Malaysia computes the debt financing ratio, they exclude all Shari'ah compliant liabilities like Shari'ah compliant financing taken from Islamic banks and Sukuk issued, but Dow Jones includes all debt? Is it because Dow Jones is of the opinion that Islamic banking products and Sukuk are actually not compliant and still contain riba, or is the purpose of the debt financing screening to limit borrowings or leverage and not so much about limiting riba? I am confused, please enlighten me." 4. A curious friend has consulted you. "You know all those water supply disruptions affecting the Klang Valley in the past caused by illegal waste dumping into the river; I was just wondering, if the company responsible for this (the culprit) was actually a publicly listed firm on Bursa Malaysia, do you think this company would be a Shari'ah compliant stock? I am interested to hear your thoughts on this." You are presented with hypothetical scenarios where questions and/or comments related to Islamic capital markets are given. Based on what you have learned in this Islamic capital market course, as well as other sources of reference you may want to obtain, provide a specific, relevant, reasoned and well-articulated response for each scenario. Each question will be worth 5 marks. You need not provide a very lengthy response. Quantity will not assure a high mark. Instead, grading will be based on accuracy and relevance. 3. The same person from before has come to you with another question: "I don't get it. Why is it that when SC Malaysia computes the debt financing ratio, they exclude all Shari'ah compliant liabilities like Shari'ah compliant financing taken from Islamic banks and Sukuk issued, but Dow Jones includes all debt? Is it because Dow Jones is of the opinion that Islamic banking products and Sukuk are actually not compliant and still contain riba, or is the purpose of the debt financing screening to limit borrowings or leverage and not so much about limiting riba? I am confused, please enlighten me." 4. A curious friend has consulted you. "You know all those water supply disruptions affecting the Klang Valley in the past caused by illegal waste dumping into the river; I was just wondering, if the company responsible for this (the culprit) was actually a publicly listed firm on Bursa Malaysia, do you think this company would be a Shari'ah compliant stock? I am interested to hear your thoughts on this
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started