Professional Documents
Culture Documents
Financial Markets
Financial Markets
John G. Kooti
John G. Kooti
2
Financial Markets
Financial Markets
Money Markets
Money Markets
Ca!ital Markets
Ca!ital Markets
Mort$a$e Markets
Mort$a$e Markets
/irect Transfer
/irect Transfer
Commercial &anks
Commercial &anks
Creit unions
Creit unions
Mutual funs
Mutual funs
Pension Funs
Pension Funs
13
Stock Markets
Stock Markets
Prouction 5!!ortunities
Prouction 5!!ortunities
Risk
Risk
1+!ecte inflation
1+!ecte inflation
26
Prouction 5!!ortunities
Prouction 5!!ortunities
.alance of Payments
.alance of Payments
K F K
K F K
rf rf
G /RP G 3P G MRP
G /RP G 3P G MRP
32
Risk Free Rate of Return
Risk Free Rate of Return
term structure
term structure
38
Theories to 1+!lain the -iel
Theories to 1+!lain the -iel
Curve
Curve
1+!ectation Theory
1+!ectation Theory
39
Se$mente Theory
Se$mente Theory
/e!reciation
/e!reciation
Strai$ht line
Strai$ht line
0nterest e+!enses
0nterest e+!enses
/ivien income
/ivien income
5!eratin$
5!eratin$
losses
losses
44
Cor!orate 0ncome Ta+
Cor!orate 0ncome Ta+
The
The
Ta+ Scheule
Ta+ Scheule
The
The
mar$inal ta+ rate
mar$inal ta+ rate
is that rate !ai on the ne+t
is that rate !ai on the ne+t
ollar of cor!orate income.
ollar of cor!orate income.
The
The
avera$e ta+ rate
avera$e ta+ rate
is that rate !ai on all cor!orate
is that rate !ai on all cor!orate
income.
income.
Ca!ital
Ca!ital
loss
loss
Ca!ital
Ca!ital
$ain
$ain
45
Ta+ Scheule
Ta+ Scheule
Tax Rate Income
.15 0-50,000
.25 50,000-75,000
.34 75,000-100,000
.39 100,000-335,000
.34 335,000-
46
Calculation of Ta+a&le 0ncome
Calculation of Ta+a&le 0ncome
Salary ?:@#999
/iviens 8#999
Personal
1+em!tions
%A#:@9'
/euctions %:#I@9'
Ta+a&le 0ncome ?:9#799
47
Ta+ 3ia&ility
Ta+ 3ia&ility