Finance

In this movie, the financial crisis was caused by ＄ 120 billion  loans  which is 10 times the size of Iceland’s economy  from the Three Icelandic Banks  which gives investors the illusion , but the credit rating agencies in the United States still think Iceland's credit is perfect  reached 3A . This points the finger at investors and Banks in the United States  and also the cause of the financial crisis in the United States . The first cause of the financial crisis was that financial institutions ignored their own ethics  in order to obtain greater profits and lack of  accountability . In order to speed up the issuance of subprime loans, some financial institutions deliberately relaxed the examination of the borrowers' qualifications. In addition, in order to gain an advantage in the fierce competition, some financial institutions reached some agreements with real estate developers, where lenders could buy houses with no down payment and everyo...

First   of all, what is p2p? It is a kind of private micro-lending model that gathers a small piece  of funds to lend to people who need funds. It is one of the products   of Internet finance . This means allowing individuals to get loans directly from other individuals and financial institutions to act as intermediaries. Although P2P is well-intentioned, it contains many problems included Platform of bankruptcy, fraud, cash drag and so on. Among them, fraud is the most serious place of P2P lending, especially in China. These platforms use high interest rates to entice investors, who are attracted by these high interest rates with f luke mind  and no expertise. For example, a Chinese P2P platform of Qidian fund is not qualified to engage in the financial industry. Since 2013, it has continuously publicized its company's "P2P" operation model to the society through television, newspapers, the Internet and other media. The starting point fund also promises in...

The definition of  weighted average cost of capital ( WACC ) is a weighted average method of calculating a company's cost of the capital that according to the weight of all  the  capital in the total source of capital. Sources of capital include common stock, preferred stock, bonds and all long-term debt . Each source of capital has the different capital cost and proportion. The formula of WACC is to evaluate the overall cost level of capital of a company. For example, When you want to run a business and put in £ 10,000 in the capital. The bank will lend 60% and the shareholders will contribute 40%. In addition, the corporate income tax is 19%, and the bank loan interest rate is 6%. First of all, the interest rate of the bank is the pre-tax cost of the cost of the debt, we have to figure out the after-tax cost of the bank. ( K= 6% x (1-19%) = 4.86%) Then,  we figure out that WACC is equal to 6. 516 %  (40% x 9% + 60% x 4.86% = 6.516%) which...