Analysis of the purchase option of computers
|
|
- Bridget Hoover
- 6 years ago
- Views:
Transcription
1 Analysis of the of coputers N. Ahituv and I. Borovits Faculty of Manageent, The Leon Recanati Graduate School of Business Adinistration, Tel-Aviv University, University Capus, Raat-Aviv, Tel-Aviv, Israel This paper presents an analysis of the of coputers in coparison with the other coon s such as rent and. The results of this analysis show that in ost cases this is not econoical fro the custoer's point of view. (Received Deceber 17) 1. Introduction In the process of coputer selection, the econoic analysis usually deals only with three alternatives of coputer acquisition:, rent and leasing (Brandon, 172; Borovits, 175; Titeck, 173). However, there is one that is overlooked and this is the. Usually, the is given by the anufacturer to the custoer who rents data processing equipent but who ay wish to it at a later date. If the custoer decides to, a certain percentage of the rental payents that have already been paid will be deducted fro the price. The coon ters for the are described in the second section. The third section shows that the analysis of the is required by a custoer involved in one of two possible decision-aking situations: 1. Before installing new equipent a custoer ay initially decide to, or rent and exercise the in future, or rent it peranently. Soeties a custoer decides to rent even when is calculated to be cheaper, in order to be allowed to return the equipent should it prove unsuitable. Analysis of the ay elicit the 'cost of decreasing risk' introduced by delaying the decision to. 2. After installing rented equipent, the custoer ay wish to re-evaluate the prior decision of renting the equipent instead of purchasing it initially. The inforation at the tie of re-evaluation is ore coplete than the inforation available at the tie of the prior decision. Thus, at this stage, the custoer ay exercise the. It is of great interest to understand the factors taken into account by the anufacturer who grants a. These are analysed in the fourth section. The fifth section presents several tables which exhibit selected nuerical results of the analysis, followed by the last section which presents conclusions derived fro the quantitative analysis. 2. The Coputer anufacturers usually grant the custoer an to the coputer after a period in which the coputer was rented. The price consists of the current price at the tie of this, inus the rent paid up to this point, ultiplied by a certain percentage which is deterined for each of the coponents. That is, C the aount of oney the custoer has to pay if he decides to exercise the after rental onths is: C = C - Rd* where: R = onthly rental price C = price d = accuulation percentage toward Exaple: If we assue that the ratio of rent to is 1 :48, R = $1, C = $48, d = 0%, and = 20, then C = 48 - (1) (20) (0.) = $3. Manufacturers usually constrain this forula with the following liitations: (a) the total accuulated onths cannot exceed M onths; or (b) the total price reduction cannot exceed P percent of the price of the equipent at the tie of the. It can be shown that these two constraints are interdependent. Using the notations denned previously the constraints are: C = C - d-r ^ PC or C(l - P)> -Rd C{\ - P) > or Rd In other words, the custoer is peritted to use the CO P) within M onths or n, onths, whichever is the sal- R' d ler. To present the ethod of analysis we oit these constraints and will bring the back at a later stage of the discussion. 3. Methods of analysis fro the custoer's point of view Let us consider a custoer who had decided to install a specific equipent and is now wishing to calculate the cost of soe alternatives such as, rent, or first rent and later. If the equipent is d the lup-su payent is certain. In this case, however, the custoer is not certain of the econoic life of the installed equipentf. In other words, the aount of tie in which the equipent could be used is unknown to the custoer. If the equipent is rented, the future payents are not certain because of at least two reasons: (a) since the econoic life of the equipent is unknown, the custoer does not know how any rent instalents will have to be paid; and (b) the rental price ight be changed by the When rental price is not constant for the whole relevant period, the correct forula should be C" = C - d. Rt where Ri is the rental price paid at onth i. For convenience purposes, we shall assue that Rt is fixed. teconoic life of coputer equipent is the period fro the instalent date up to the econoic obsolescence which is defined by Brandon (172, p. 7) as 'the point at which the syste can no longer eet the user's requireents effectively'. An alternative ter which will be used here is 'Syste Life-cycle'. Volue 21 Nuber Downloaded fro
2 anufacturer in the future. To siplify the analysis we shall assue: (a) the custoer has an estiate of the econoic life of the equipent (b) the custoer assues that rental price will reain unchanged during the econoic life of the equipent (c) the custoer's price of capital ( of interest) is known and constant (d) when future resort to the is considered, the current price at the date of is assued to be equivalent to the existing price. Once the preceding assuptions have been ade, the coparison between the alternatives should be ade on the basis of the results of the following calculations. Deterine the actual cash flow of each of the following alternatives and discount it in accordance with the predeterined interest. The ain cost eleents of these alternatives are as follows: 1. : 2. al: Initial cost Maintenance cost Insurance cost Monthly rental payents Overtie payents 3. : Monthly rental payents up to the tie of Maintenance cost after the tie cost at the tie of resorting to the In analysing the, it is possible, of course, to change the tie of the, and then to analyse the results on the basis of the anufacturer's constraints and the assuptions entioned earlier. It should again be noted that this analysis does not take into consideration the uncertainty about the future and rental prices. Soe of the anufacturers quote the aintenance and rental prices sepaly. In such cases the analysis ay exclude the aintenance price, and use only the pure onthly rental price i.e. onthly rent inus onthly aintenance price. To illust the ethod of analysis, an exaple is now given. Assue the following data: price (C) $48 Monthly rent (/?) $l ( pur e rent) Cuulative percentage for the (d) 0% Estiated econoic life (A/*) 0 onths Rate of interest (/) 0% Then, the coparison of the three alternatives will yield the following : : $48 (excluding insurance cost) : 0 x 1 = $0 1. First the constraint on the should be calculated. If we assue that the axiu accuulated nuber of onths cannot exceed 3, and the deduction should not exceed % of the price, then 48 x (1-0-5) _ = onths 1 x 0- which indicates that the should be ade within 3 onths. 2. If the is exercised after 1 year the total cost is 10 al payents cost Total cost 3. After two years al payents cost Total cost 4. After three years al payents cost X 1 = 48 - x 0 = $ $-8 $ X 1 = $ x 0' = $33- $57-3 X 1 = $ x 0- = $2-4 Total cost $2. 4 It is clear that if the econoic life of the coputer is greater than the -to-rent ratio, the coputer should be d (Brandon, 172). For higher s of interest this breakeven point oves further in favour of the rent alternative. If we assue an interest of zero percentage, then the rental cost is: C R {) = R- The cost of the after onths is: C 0 () = C R () + C - dc R (ni) = C + C R ()(l - d) = C + R{\ - d) Substituting M*, the econoic life of the coputer, indicates the axiu nuber of onths for which the is econoical: For our exaple C R {M*)> C + R{\ -d) RM* > C + R--(I ~ d) which yields R(\ - d) 1 x 0-48 = 30 onths 1 x (1-0-) which eans, that it is econoically correct to exercise this up to 30 onths of rent. This equation shows that when the interest equals zero, the is not econoical if the expected life of the equipent is less than or equal to the -to-rent ratio. In other words, the is econoical only when the alternative was econoical initially. If we denote the interest as / per onth, the total discounted rental cash flow is: M'-l C R (M\ I) = Therefore, the cost of the in onth is -l r ( i\ "V 7 = 0 R c ~ d--r The breakeven point for can now be obtained, as it was done before. Now let us exaine the reconsideration of a custoer's prior decision to rent coputer equipent. Possible reasons for reconsidering this decision ight be: (a) changes in the The Coputer Journal Downloaded fro
3 estiation of the econoic life of the equipent (the reaining utilisation period); (b) change in the onthly rental price; (c) change in the current price; or (d) change in the interest. In such cases the custoer ay choose either to continue the rental contract, or to exercise the. The choice can be ade by a coparison between an iediate payent of agnitude C", and a sequence of future payents with estiated aounts, ters and of interest. (A ore sophisticated custoer ay use odels of decision theory under uncertainty.) C, the iediate lup su which has to be paid in a can be easily calculated as C = C - d-r(or C = C - d- i), where C is the current price; the rental payents already disbursed, -R (or Rj), and the accuulation percentage, d, are known. Assuing that the current onthly rental price is constant (when better inforation is not available) and that the econoic life has been revised, the custoer has a siple to rent proble which was widely discussed by Brandon (172), Borovits (175) and others. 4. Method of analysis fro the anufacturers point of view The anufacturer is free to anipulate soe of the paraeters of the, while for the custoer these paraeters are fixed. Therefore, in addition to the present value analysis which is the sae for both custoer and anufacturer it is interesting to analyse the anufacturer's stgy in setting these paraeters. The paraeters are: d The accuulation percentage (the percentage of the rent payents that will be deducted fro the price) M The axiu nuber of onths that can be accuulated P The upper liit of the aount that can be deducted It can be assued that the anufacturer estiates the expected period of rent, and then, based on this estiation and on the of interest, coputes the onthly rent in such a way that the profit fro renting the equipent will not be less than the profit fro selling the equipent. Therefore, there is a rental period in which the anufacturer is indifferent between renting and selling the equipent. The rental payents include four coponents: (a) al payent for the equipent (b) Maintenance cost (c) 'Risk payent' which has to cover the custoer's privilege of returning the equipent at any tie which akes its re-renting or its selling uncertain (d) The interest on the investent. In calculating the accuulation percentage (d), the anufacturer will deduct at least the portion which includes the last three coponents. Exercising the when 1 d is higher than the su of these three coponents yields a higher profit. In order to illust this, let us take the exaple presented previously: Table 1 Net present value coparison of rent v. syste life cycle of 3 onths 3 cost 48 0 accuulate 1 year years years Volue 21 Nuber Downloaded fro
4 price $48 Monthly rent $ 1 Accuulation percentage 0% Rate of interest 0% In the above data % of the onthly rent is represented by the of interest, aintenance and risk. Now, since our analysis relates to pure rent (without aintenance price) and the interest is zero, the risk is counted as % of the rent. Using this data, it follows that the anufacturer estiates the equipent life as = 80 onth r^4 - o^ Another possible interpretation is that the anufacturer ay want to gain higher profits when the is exercised (assuing that the probability of the custoer returning the equipent is relatively sall). The other two constraints set by the anufacturer which were previously entioned contribute, obviously, to profit increase. These two constraints prevent the custoer fro buying the equipent for a very sall aount after a long period of renting. They induce the custoer to replace the old equipent by a new one. The anufacturer's policy is clear because by the tie the custoer exercises the ost or all of the investent will be covered, so finding another usage for the old equipent ay result in higher profit. 5. Suggestive nuerical results To put our analysis to work we present soe calculations using the following values: / The interest is %, % and % per year (/ = 0, 0, -) copounded onthly R The pure rent is $1 (R = 1) C The price is $3, $48 and $0 (since various coponents have different rent-to- ratios) M* Three lengths of econoic life are 3, 48 and 0 onths (M* = 3, 48, 0) Three rental periods used for the ( = 24, 3) d The accuulation percentage is -4, -5, - (since various coponents have different accuulating percentages). The results of the calculations are shown in Tables 1, 2 and 3.. Conclusions The analysis yields the following conclusions for the custoer (all paraeters are held constant): 1. The rentability of the increases with the increase in the accuulation percentage. 2. The rentability of the definitely increases with the increase in the interest. However, since the net present value of the rent is decreased, the decision should also be based upon the difference between these two values. Table 2 Net present value coparison of rent v. syste life cycle of 48 onths cost accuulate 1 year years years The Coputer Journal Downloaded fro
5 Table 3 Net present value coparison of rent v. syste life cycle of 0 onths 3 cost 48 0 accuulate 1 year years years The later the date of the the less econoical this is. 4. The value of the is not affected by the value of the econoic life cycle of the equipent. However, the net present value of life cycle increases. 5. Exercising the the rent becoes increases as the less econoical as the cost of the equipent increases.. As the ratio between the expected econoic life to the cost increases, the becoes ore econoical. For exaple: when cost is held constant at $3, the rent alternative is ore attractive than the "or an econoic life of 3 onths. When the expected econoic life is 48 onths there is an econoic breakeven point (the breakeven point for the date of the is between and 24 onths). The becoes ore attractive than the rent alternative as the econoic life reaches 0 onths. Usually it is not worthwhile to analyse the in the case where the rent alternative is initiall)' less attractive than purchasing. However, any custoers hesitate to the data processing equipent, especially when it is the first installation in their organisation, or when it is an unfailiar equipent, even if the alternative is better than rent. Our analysis coputes the 'cost of hesitation' to these custoers. References BRANDON, D. H. (172). Coputer Acquisition Method Analysis, Dataation, Vol. 1, No.. BOROVITS, I. (175). Coputer Selection and Acquisition, Data Processing Journal, Vol. 17, No. 2. TIMMRECK, E. M. (173). Coputer Selection Methodology, ACM Coputing Surveys, Vo. 5, No. 4. Volue 21 Nuber 2 10 Downloaded fro
Time Value of Money. Financial Mathematics for Actuaries Downloaded from by on 01/12/18. For personal use only.
Interest Accuulation and Tie Value of Money Fro tie to tie we are faced with probles of aking financial decisions. These ay involve anything fro borrowing a loan fro a bank to purchase a house or a car;
More informationIII. Valuation Framework for CDS options
III. Valuation Fraework for CDS options In siulation, the underlying asset price is the ost iportant variable. The suitable dynaics is selected to describe the underlying spreads. The relevant paraeters
More informationPRODUCTION COSTS MANAGEMENT BY MEANS OF INDIRECT COST ALLOCATED MODEL
PRODUCTION COSTS MANAGEMENT BY MEANS OF INDIRECT COST ALLOCATED MODEL Berislav Bolfek 1, Jasna Vujčić 2 1 Polytechnic Slavonski Brod, Croatia, berislav.bolfek@vusb.hr 2 High school ''Matija Antun Reljković'',
More informationThe Institute of Chartered Accountants of Sri Lanka
The Institute of Chartered Accountants of Sri Lanka Executive Diploa in Business and Accounting Financial Matheatics Financial Matheatics deals with probles of investing Money, or Capital. If the investor
More informationMAT 3788 Lecture 3, Feb
The Tie Value of Money MAT 3788 Lecture 3, Feb 010 The Tie Value of Money and Interest Rates Prof. Boyan Kostadinov, City Tech of CUNY Everyone is failiar with the saying "tie is oney" and in finance there
More informationDSC1630. Tutorial letter 201/1/2014. Introductory Financial Mathematics. Semester 1. Department of Decision Sciences DSC1630/201/1/2014
DSC1630/201/1/2014 Tutorial letter 201/1/2014 Introductory Financial Matheatics DSC1630 Seester 1 Departent of Decision Sciences IMPORTANT INFORMATION: This tutorial letter contains solutions to the assignents
More informationA Description of Swedish Producer and Import Price Indices PPI, EXPI and IMPI
STATSTCS SWEDE Rev. 2010-12-20 1(10) A Description of Swedish roducer and port rice ndices, EX and M The rice indices in roducer and port stages () ai to show the average change in prices in producer and
More informationConstruction Methods.. Ch.-2- Factors Affecting the Selection of Construction Equipment
Construction Methods.. Ch.-2- Factors Affecting the Selection of Construction Equipent Chapter 2 Factors Affecting the Selection of Construction Equipent 2. Factors Affecting the Selection of Construction
More informationCHAPTER 2: FUTURES MARKETS AND THE USE OF FUTURES FOR HEDGING
CHAPER : FUURES MARKES AND HE USE OF FUURES FOR HEDGING Futures contracts are agreeents to buy or sell an asset in the future for a certain price. Unlike forward contracts, they are usually traded on an
More informationIntroductory Financial Mathematics DSC1630
/2015 Tutorial Letter 201/1/2015 Introductory Financial Matheatics DSC1630 Seester 1 Departent of Decision Sciences Iportant Inforation: This tutorial letter contains the solutions of Assignent 01. Bar
More informationBERMUDA NATIONAL PENSION SCHEME (GENERAL) REGULATIONS 1999 BR 82 / 1999
QUO FA T A F U E R N T BERMUDA NATIONAL PENSION SCHEME (GENERAL) REGULATIONS 1999 BR 82 / 1999 TABLE OF CONTENTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Citation Interpretation PART 1 PRELIMINARY PART II REGISTRATION
More informationWho Gains and Who Loses from the 2011 Debit Card Interchange Fee Reform?
No. 12-6 Who Gains and Who Loses fro the 2011 Debit Card Interchange Fee Refor? Abstract: Oz Shy In October 2011, new rules governing debit card interchange fees becae effective in the United States. These
More informationOptimal Design Of English Auctions With Discrete Bid Levels*
Optial Design Of English Auctions With Discrete Bid Levels* E. David, A. Rogers and N. R. Jennings Electronics and Coputer Science, University of Southapton, Southapton, SO7 BJ, UK. {ed,acr,nrj}@ecs.soton.ac.uk.
More informationStaff Memo N O 2005/11. Documentation of the method used by Norges Bank for estimating implied forward interest rates.
N O 005/ Oslo Noveber 4, 005 Staff Meo Departent for Market Operations and Analysis Docuentation of the ethod used by Norges Bank for estiating iplied forward interest rates by Gaute Myklebust Publications
More informationHandelsbanken Debt Security Index Base Methodology. Version September 2017
Handelsbanken Debt Security Index Base ethodology Version 1.0 22 Septeber 2017 Contents 1 Introduction... 3 2 Description... 3 3 General Ters... 3 4 Iportant Inforation... 4 5 Definitions... 5 5.1 iscellaneous...
More informationVariance Swaps and Non-Constant Vega
Variance Swaps and Non-Constant Vega David E. Kuenzi Head of Risk anageent and Quantitative Research Glenwood Capital Investents, LLC 3 N. Wacker Drive, Suite 8 Chicago, IL 666 dkuenzi@glenwood.co Phone
More informationTotal PS TG. Budgeted production levels can be calculated as follows:
U. ;' cn '.:. \.' >>.:---"--^ '-.'" * i--.'. * ::-;.v>"--:'i.-^ -7 -..=../.-' "-. " '.:.' Ill all it.;? s Solution Total PS TG Sales units 6,000 5,000 1,000 Sales value $605,000 $475,000 $130,000 Workings
More informationSee Market liquidity: Research Findings and Selected Policy Implications in BIS (1999) for the various dimensions of liquidity.
Estiating liquidity preia in the Spanish Governent securities arket 1 Francisco Alonso, Roberto Blanco, Ana del Río, Alicia Sanchís, Banco de España Abstract This paper investigates the presence of liquidity
More informationSurvey of Math: Chapter 21: Consumer Finance Savings Page 1
Survey of Math: Chapter 21: Consuer Finance Savings Page 1 The atheatical concepts we use to describe finance are also used to describe how populations of organiss vary over tie, how disease spreads through
More informationThe Institute of Chartered Accountants of Sri Lanka
The Institute of Chartered Accountants of Sri Lanka Quantitative Methods for Business Studies Handout 06: Investent Appraisal Investent Appraisal Investent appraisal is called as capital budgeting. It
More informationAIM V.I. Small Cap Equity Fund
AIM V.I. Sall Cap Equity Fund PROSPECTUS May 1, 2009 Series I shares Shares of the fund are currently offered only to insurance copany separate accounts funding variable annuity contracts and variable
More informationLast For A Lifetime. Making Your Money. Why You Need to Know About Annuities
Making Your Money Last For A Lifetie Why You Need to Know About Annuities A Joint Project of The Actuarial Foundation and WISER, the Woen s Institute for a Secure Retireent Acknowledgeents Special thanks
More informationResearch on the Management Strategy from the Perspective of Profit and Loss Balance
ISSN: 2278-3369 International Journal of Advances in Manageent and Econoics Available online at: www.anageentjournal.info RESEARCH ARTICLE Research on the Manageent Strategy fro the Perspective of Profit
More informationProduction, Process Investment and the Survival of Debt Financed Startup Firms
Babson College Digital Knowledge at Babson Babson Faculty Research Fund Working Papers Babson Faculty Research Fund 00 Production, Process Investent and the Survival of Debt Financed Startup Firs S. Sinan
More informationCompensation Report. Fresenius Medical Care AG & Co. KGaA
Copensation Report Fresenius Medical Care AG & Co. KGaA Copensation Report The copensation report of FMC-AG & Co. KGaA suarizes the ain eleents of the copensation syste for the ebers of the Manageent Board
More informationQED. Queen s Economics Department Working Paper No. 1088
QED Queen s Econoics Departent Working Paper No. 1088 Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regies Hasret Benar Eastern Mediterranean University
More informationHiding Loan Losses: How to Do It? How to Eliminate It?
ömföäflsäafaäsflassflassf ffffffffffffffffffffffffffffffffffff Discussion Papers Hiding oan osses: How to Do It? How to Eliinate It? J P. Niiniäki Helsinki School of Econoics and HECER Discussion Paper
More informationASSESSING CREDIT LOSS DISTRIBUTIONS FOR INDIVIDUAL BORROWERS AND CREDIT PORTFOLIOS. BAYESIAN MULTI-PERIOD MODEL VS. BASEL II MODEL.
ASSESSING CREIT LOSS ISTRIBUTIONS FOR INIVIUAL BORROWERS AN CREIT PORTFOLIOS. BAYESIAN ULTI-PERIO OEL VS. BASEL II OEL. Leonid V. Philosophov,. Sc., Professor, oscow Coittee of Bankruptcy Affairs. 33 47
More informationA NUMERICAL EXAMPLE FOR PORTFOLIO OPTIMIZATION. In 2003, I collected data on 20 stocks, which are listed below: Berkshire-Hathaway B. Citigroup, Inc.
A NUMERICAL EXAMPLE FOR PORTFOLIO OPTIMIZATION In 3, I collected data on stocks, which are listed below: Sybol ADBE AMZN BA BRKB C CAT CSCO DD FDX GE GLW GM INTC JNJ KO MO MSFT RTN SBC Nae Adobe Systes
More informationExempt Organization Business Income Tax Return (and proxy tax under section 6033(e))
6/7/216 1:39:49 AM 1 214 Return COMBINED JEWISH PHILANTHROPIES OF For 99-T PUBLIC DISCLOSURE COPY Exept Organization Business Incoe Tax Return (and proxy tax under section 633(e)) OMB No. 1545-687 214
More informationState of Delaware VOYA PLAN and Your Voya Retirement Insurance and Annuity Company Investment Program - Plan-related Information
State of Delaware VOYA PLAN 664093 and 664094 Your Voya Retireent Insurance and Annuity Copany Investent Progra - Plan-related Inforation August 17,2016 The purpose of this docuent is to suarize certain
More informationCapital reserve planning:
C O - O P E R A T I V E H O U S I N G F E D E R A T I O N O F C A N A D A Capital reserve planning: A guide for federal-progra co-ops Getting our house in order P A R T O F T H E 2 0 2 0 V I S I O N T
More informationS old. S new. Old p D. Old q. New q
Proble Set 1: Solutions ECON 301: Interediate Microeconoics Prof. Marek Weretka Proble 1 (Fro Varian Chapter 1) In this proble, the supply curve shifts to the left as soe of the apartents are converted
More informationCatastrophe Insurance Products in Markov Jump Diffusion Model
Catastrophe Insurance Products in Markov Jup Diffusion Model (Topic of paper: Risk anageent of an insurance enterprise) in Shih-Kuei Assistant Professor Departent of Finance National University of Kaohsiung
More informationAn Analytical Solution to Reasonable Royalty Rate Calculations a
-0- An Analytical Solution to Reasonable Royalty Rate Calculations a Willia Choi b Roy Weinstein c July 000 Abstract The courts are increasingly encouraging use of ore rigorous, scientific approaches to
More informationCapital Asset Pricing Model: The Criticisms and the Status Quo
Journal of Applied Sciences Research, 7(1): 33-41, 2011 ISSN 1819-544X This is a refereed journal and all articles are professionally screened and reviewed 33 ORIGINAL ARTICLES Capital Asset Pricing Model:
More informationUnisex-Calculation and Secondary Premium Differentiation in Private Health Insurance. Oliver Riedel
Unisex-Calculation and Secondary Preiu Differentiation in Private Health Insurance Oliver Riedel University of Giessen Risk Manageent & Insurance Licher Strasse 74, D - 35394 Giessen, Gerany Eail: oliver.t.riedel@wirtschaft.uni-giessen.de
More informationRecursive Inspection Games
Recursive Inspection Gaes Bernhard von Stengel February 7, 2016 arxiv:1412.0129v2 [cs.gt] 7 Feb 2016 Abstract We consider a sequential inspection gae where an inspector uses a liited nuber of inspections
More informationCREDIT AND TRAINING PROVISION TO THE POOR BY VERTICALLY CONNECTED NGO S AND COMMERCIAL BANKS
CREDIT AND TRAINING PROVISION TO THE POOR BY VERTICALLY CONNECTED NGO S AND COMMERCIAL BANKS Gherardo Gino Giuseppe Girardi Econoics, Finance and International Business London Metropolitan University g.girardi@londoneac.uk
More information... About Higher Moments
WHAT PRACTITIONERS NEED TO KNOW...... About Higher Moents Mark P. Kritzan In financial analysis, a return distribution is coonly described by its expected return and standard deviation. For exaple, the
More informationExempt Organization Business Income Tax Return. OMB No Form 990-T (and proxy tax under section 6033(e))
Exept Organization Business ncoe Tax Return OMB No. 1545-0687 For 990-T (and proxy tax under section 6033(e)) Departent of the Treasury nternal Revenue Service A Check box if address changed 529(a) C Book
More informationQED. Queen s Economics Department Working Paper No Hasret Benar Department of Economics, Eastern Mediterranean University
QED Queen s Econoics Departent Working Paper No. 1056 Regulation and Taxation of Casinos under State-Monopoly, Private Monopoly and Casino Association Regies Hasret Benar Departent of Econoics, Eastern
More information"Inflation, Wealth And The Real Rate Of Interest"
Econoic Staff Paper Series Econoics 3-1975 "Inflation, Wealth And The Real Rate Of Interest" Walter Enders Iowa State University Follow this and additional works at: http://lib.dr.iastate.edu/econ_las_staffpapers
More informationResearch on Entrepreneur Environment Management Evaluation Method Derived from Advantage Structure
Research Journal of Applied Sciences, Engineering and Technology 6(1): 160-164, 2013 ISSN: 2040-7459; e-issn: 2040-7467 Maxwell Scientific Organization, 2013 Subitted: Noveber 08, 2012 Accepted: Deceber
More informationGarrison Schlauch - CLAS. This handout covers every type of utility function you will see in Econ 10A.
This handout covers every type of utility function you will see in Econ 0A. Budget Constraint Unfortunately, we don t have unliited oney, and things cost oney. To siplify our analysis of constrained utility
More informationThird quarter 2017 results
Third quarter 2017 results October 27, 2017 Cautionary stateent regarding forward-looking stateents This presentation contains stateents that constitute forward-looking stateents, including but not liited
More informationIntroduction to Risk, Return and the Opportunity Cost of Capital
Introduction to Risk, Return and the Opportunity Cost of Capital Alexander Krüger, 008-09-30 Definitions and Forulas Investent risk There are three basic questions arising when we start thinking about
More informationStochastic Analysis of Life Insurance Surplus
Stochastic Analysis of Life Insurance Surplus Natalia Lysenko, Gary Parker Abstract The behaviour of insurance surplus over tie for a portfolio of hoogeneous life policies in an environent of stochastic
More informationCorrective Taxation versus Liability
Aerican Econoic Review: Papers & Proceedings 2011, 101:3, 273 276 http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.273 Law and Econoics Corrective Taxation versus Liability By Steven Shavell* Since
More informationFirst quarter 2017 results
First quarter 2017 results April 28, 2017 Cautionary stateent regarding forward-looking stateents This presentation contains stateents that constitute forward-looking stateents, including but not liited
More informationMADM Methods in Solving Group Decision Support System on Gene Mutations Detection Simulation
MADM Methods in Solving Group Decision Support Syste on Gene Mutations Detection Siulation Eratita *1, Sri Hartati *2, Retantyo Wardoyo *2, Agus Harjoko *2 *1 Departent of Inforation Syste, Coputer Science
More information\Notes" Yuri Y. Boykov. 4 August Analytic approximation of. In this chapter we apply the method of lines to approximate values of several
\Notes" Yuri Y. Boyov 4 August 1996 Part II Analytic approxiation of soe exotic options 1 Introduction In this chapter we apply the ethod of lines to approxiate values of several options of both European
More informationProject selection by using AHP and Bernardo Techniques
International Journal of Huanities and Applied Sciences (IJHAS) Vol. 5, No., 06 ISSN 77 4386 Project selection by using AHP and Bernardo Techniques Aza Keshavarz Haddadha, Ali Naazian, Siaak Haji Yakhchali
More informationOptimal Dynamic Pricing for Assembly Product Supply Chain
Aerican Journal of Operations Manageent and Inforation Systes 7; (: 54-7 http://www.sciencepublishinggroup.co/j/ajois doi:.648/j.ajois.7.8 Optial Dynaic Pricing for Assebly Product Supply Chain Yufang
More informationOPTIMAL ONLINE BANKING SECURITY CONFIGURATION UNDER BURDEN OF PROOF
Association for Inforation Systes AIS Electronic Library (AISeL) ICIS Proceedings International Conference on Inforation Systes (ICIS) OPTIMAL ONLINE BANKING SECURITY CONFIGURATION UNDER BURDEN OF PROOF
More informationFinancial Risk: Credit Risk, Lecture 1
Financial Risk: Credit Risk, Lecture 1 Alexander Herbertsson Centre For Finance/Departent of Econoics School of Econoics, Business and Law, University of Gothenburg E-ail: alexander.herbertsson@cff.gu.se
More informationA Complete Example of an Optimal. Two-Bracket Income Tax
A Coplete Exaple of an Optial Two-Bracket Incoe Tax Jean-François Wen Departent of Econoics University of Calgary March 6, 2014 Abstract I provide a siple odel that is solved analytically to yield tidy
More informationReturn of Private Foundation. or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation
For Return of Private Foundation 990-PF Departent of the Treasury Internal Revenue Service À¾ ½ Note: The foundation ay be able to use a copy of this return to satisfy state reporting requireents. For
More informationARTICLE IN PRESS. Pricing in debit and credit card schemes. Julian Wright* 1. Introduction
ARTICLE IN PRE Econoics Letters x (200) xxx xxx www.elsevier.co/ locate/ econbase Pricing in debit and credit card schees Julian Wright* Departent of Econoics, University of Auckland, Private ag 92019,
More informationHow Integrated Benefits Optimization Can Benefit Employers & Employees
Integrated Benefits Optiization A Perspective Partners White Paper How Integrated Benefits Optiization Can Benefit Eployers & Eployees Executive Suary Eployers and eployees soeties see to be on opposite
More informationResearch Article Concession Period Decision Models for Public Infrastructure Projects Based on Option Games
Matheatical Probles in Engineering Volue 2015, Article ID 671764, 9 pages http://dx.doi.org/10.1155/2015/671764 Research Article Concession Period Decision Models for Public Infrastructure Projects Based
More informationFINAL VERSION APPROVED BY THE ISSUER. Final Terms dated 15 October Natixis. Legal entity identifier (LEI): KX1WK48MPD4Y2NCUIZ63
MIFID II product governance / Retail investors, professional investors and ECPs Solely for the purposes of the anufacturer's product approval process, the target arket assessent in respect of the Notes
More informationNon-Linear Programming Approach for Optimization of Construction Project s Control System
Non-Linear Prograing Approach for Optiization of Construction Project s Control Syste Yusrizal Lubis 1 and Zuhri 1,2 Sekolah Tinggi Teknik Harapan Medan Indonesia, Sekolah Tinggi Ilu Manajeen Suka Medan
More informationNBER WORKING PAPER SERIES WEAK AND SEMI-STRONG FORM STOCK RETURN PREDICTABILITY, REVISITED. Wayne E. Ferson Andrea Heuson Tie Su
NBER WORKING PAPER SERIES WEAK AND SEMI-STRONG FORM STOCK RETURN PREDICTABILITY, REVISITED Wayne E. Ferson Andrea Heuson Tie Su Working Paper 10689 http://www.nber.org/papers/w10689 NATIONAL BUREAU OF
More informationModeling Monetary Policy
Modeling Monetary Policy Sauel Reynard Swiss National Bank Andreas Schabert University of Dortund Deceber 3, 28 Abstract Models currently used for onetary policy analysis equate the onetary policy interest
More informationWeak and Semi-strong Form Stock Return Predictability Revisited
Weak and Sei-strong For Stock Return Predictability Revisited WAYNE E. FERSON ANDREA HEUSON TIE SU Boston College 140 Coonwealth Avenue, Chestnut Hill, MA. 02467 University of Miai 5250 University Drive,
More informationAppendix Table A1. MPC Stratified by Additional Variables
Appendix Table A1. MPC Stratified by Additional Variables This table presents estiates of the MPC out of liquidity for groups of consuers stratified by whether they have low, ediu, or high levels of credit
More informationAn alternative route to performance hypothesis testing Received (in revised form): 7th November, 2003
An alternative route to perforance hypothesis testing Received (in revised for): 7th Noveber, 3 Bernd Scherer heads Research for Deutsche Asset Manageent in Europe. Before joining Deutsche, he worked at
More informationAnatomy of an Investor Term Sheet
Anatoy of an Investor Ter Sheet By Andrew S. Whitan, Managing Partner Before you receive a ter sheet fro an investor, you should consider that traditional investors usually structure a ter sheet to protect
More informationThe Least-Squares Method for American Option Pricing
U.U.D.M. Proect Report 29:6 The Least-Squares Method for Aerican Option Pricing Xueun Huang and Xuewen Huang Exaensarbete i ateatik, 3 hp + 5 hp Handledare och exainator: Macie Kliek Septeber 29 Departent
More informationImplementation of MADM Methods in Solving Group Decision Support System on Gene Mutations Detection Simulation
Ipleentation of MADM Methods in Solving Group Decision Support Syste on Gene Mutations Detection Siulation Eratita *1, Sri Hartati *2, Retantyo Wardoyo *2, Agus Harjoko *2 *1 Departent of Inforation Syste,
More informationEndogenous Labor Supply, Rigid Factor Prices And A Second Best Solution
Econoic Staff Paper Series Econoics 6-1975 Endogenous Labor Supply, Rigid Factor Prices And A Second Best Solution Harvey E. Lapan Iowa State University Follow this and additional works at: http://lib.dr.iastate.edu/econ_las_staffpapers
More informationImprecise Probabilities in Non-cooperative Games
7th International Syposiu on Iprecise Probability: Theories and Applications, Innsbruck, Austria, 2011 Iprecise Probabilities in Non-cooperative Gaes Robert Nau Fuqua School of Business Duke University
More informationNeural Network Model of Pricing Health Care Insurance
Neural Network Model of Pricing Health Care Insurance Abstract To pricing health insurance plan statisticians use atheatical odels to analysis custoer s future health condition. General Addictive Model
More informationTime Varying International Market Integration
International Journal of conoics and Finance; Vol. 5, No. 11; 013 ISSN 1916-971X-ISSN 1916-978 Published by Canadian Center of Science and ducation Tie Varying International Market Integration Dhouha Hadidane
More informationState Trading Enterprises as Non-Tariff Measures: Theory, Evidence and Future Research Directions
State Trading Enterprises as Non-Tariff Measures: Theory, Evidence and Future Research Directions Steve McCorriston (University of Exeter, UK) (s.ccorriston@ex.ac.uk) Donald MacLaren (university of Melbourne,
More informationModelling optimal asset allocation when households experience health shocks. Jiapeng Liu, Rui Lu, Ronghua Yi, and Ting Zhang*
Modelling optial asset allocation when households experience health shocks Jiapeng Liu, Rui Lu, Ronghua Yi, and Ting Zhang* Abstract Health status is an iportant factor affecting household portfolio decisions.
More informationBond Duration. Floyd Vest
Bond Duration Floyd Vest It is well known that when arket interest rates change, the price of a bond, or the share prices in a bond fund, changes. Bond duration is widely used to estiate the change in
More informationWhy Do Large Investors Disclose Their Information?
Why Do Large Investors Disclose Their Inforation? Ying Liu Noveber 7, 2017 Abstract Large investors often advertise private inforation at private talks or in the edia. To analyse the incentives for inforation
More informationALASKA'S REVENUE FORECASTS AND EXPENDITURE OPTIONS
REVEW OF SOCAL AND ECONOMC CONDTONS UNVERSTY OF ALASKA, NSTTUTE OF SOCAL AND ECONOMC RESEARCH, JULY 1978, Vol. XV, No.2 ALASKA'S REVENUE FORECASTS AND EXPENDTURE OPTONS NTRODUCTON Can Alaska's state governent
More informationEconomic Growth, Inflation and Wage Growth: Experience from a Developing Country
www.sciedu.ca/br Business and Manageent Research Vol., No. ; 0 Econoic Growth, Inflation and Wage Growth: Experience fro a Developing Countr Shahra Fattahi (Corresponding author) Departent of Econoics
More informationResearch Article Analysis on the Impact of the Fluctuation of the International Gold Prices on the Chinese Gold Stocks
Discrete Dynaics in Nature and Society, Article ID 308626, 6 pages http://dx.doi.org/10.1155/2014/308626 Research Article Analysis on the Ipact of the Fluctuation of the International Gold Prices on the
More informationA NOJE;o.n INTEREST RATE RISK, SYSTEMATIC RISK and the PLANNING. Researchmeraorandum Sept. '85
ET 05548 1985 023 SERIE RE5ERR[HE0RHHDH A NOJE;o.n INTEREST RATE RISK, SYSTEMATIC RISK and the PLANNING HORIZON Leon J. de Man Researcheraorandu 1985-23 Sept. '85 VRIJE UNIVERSITEIT Faculteit der Econoische
More informationEarnings per share up by 21.2% to EUR 6.53, allowing increased dividend of EUR 2.40 per share
Press Release Mülhei an der Ruhr, March 21, 2013 Brenntag once again reports significantly iproved earnings and exceeds iddle of the guidance range Gross profit increased to 1,925.7 illion Growth in operating
More informationAN ANALYSIS OF EQUITY IN INSURANCE. THE MATHEMATICAL APPROACH OF RISK OF RUIN FOR INSURERS
Iulian Mircea AN ANALYSIS OF EQUITY IN INSURANCE. THE MATHEMATICAL APPROACH OF RISK OF RUIN FOR INSURERS A.S.E. Bucure ti, CSIE, Str.Mihail Moxa nr. 5-7, irceaiulian9@yahoo.co, Tel.074.0.0.38 Paul T n
More informationNon-Linear Exchange Rate Pass-Through in Emerging Markets
WP/16/1 Non-Linear Exchange Rate Pass-Through in Eerging Markets by Francesca G. Caselli and Agustin Roitan IMF Working Papers describe research in progress by the author(s) and are published to elicit
More informationModeling Monetary Policy
Modeling Monetary Policy Sauel Reynard Swiss National Bank Andreas Schabert TU Dortund University May 22, 29 Abstract In an otherwise standard acroeconoic odel, we odel the central bank as providing oney
More informationEvaluation on the Growth of Listed SMEs Based on Improved Principal Component Projection Method
Proceedings of the 7th International Conference on Innovation & Manageent 519 Evaluation on the Growth of Listed SMEs Based on Iproved Principal Coponent Projection Method Li Li, Ci Jinfeng Shenzhen Graduate
More informationWilliam J. Clinton Foundation
Willia J. Clinton Foundation Independent Accountants Report and Consolidated Financial Stateents Deceber 31, 211 and 21 Willia J. Clinton Foundation Deceber 31, 211 and 21 Contents Independent Accountants
More informationUnisex Tariffs in Health Insurance
The Geneva Papers, 2006, 31, (233 244) r 2006 The International Association for the Study of Insurance Econoics 1018-5895/06 $30.00 www.palgrave-journals.co/gpp Unisex Tariffs in Health Insurance Oliver
More informationFor calendar year 2015 or other tax year beginning 01/01, 2015, and ending 12/31,
Exept Organization Business ncoe Tax Return OMB No. 1545-0687 For 990-T (and proxy tax under section 6033(e)) Departent of the Treasury nternal Revenue Service Open A Check box if address changed For calendar
More informationSection on Survey Research Methods
Using the Statistics of Incoe Division s Saple Data to Reduce Measureent and Processing Error in Sall Area Estiates Produced fro Adinistrative Tax Records Kiberly Henry, Partha Lahiri, and Robin Fisher
More information1. THAT Report No. ENG , dated August 1, 2012, from the Water Planning Engineer, regarding Non-Revenue Water (NRW) programs, be received; and
OS 1A ABBOTSFORD Report o. EG 52-212 August 1, 212 File o: 56-1 COUCIL REPORT Executive Coittee To: Fro: Subject: Mayor and Council Karl Filiatrault, Water Planning Engineer on-revenue Water Progras RECOMMEDATIOS
More informationModeling Monetary Policy
Modeling Monetary Policy Sauel Reynard Swiss National Bank Andreas Schabert University of Dortund Septeber 23, 28 Abstract The epirical relationship between the interest rates that central banks control
More informationLECTURE 4: MIXED STRATEGIES (CONT D), BIMATRIX GAMES
LECTURE 4: MIXED STRATEGIES (CONT D), BIMATRIX GAMES Mixed Strategies in Matrix Gaes (revision) 2 ixed strategy: the player decides about the probabilities of the alternative strategies (su of the probabilities
More informationApplying for a large passenger service licence
Applying for a large passenger service licence To operate a large passenger service the law requires individuals or copanies to hold the appropriate transport service licence. This pack includes: application
More informationInstructions for filing Liatis Foundation Form 990T - Exempt Organization Business Return for the period ended December 31, 2010
nstructions for filing Liatis Foundation For 990T - Exept Organization Business Return for the period ended Deceber 1, 2010 ************************* Signature... The original return should be signed (using
More informationCONDITIONAL MEAN DOMINANCE: TESTING FOR SUFFICIENCY OF ANOMALIES
CONDITIONAL MEAN DOMINANCE: TESTING FOR SUFFICIENCY OF ANOMALIES K. Victor Chow and Ou Hu* ABSTRACT Extensive epirical literature of anoalies suggests that an asset reallocation by buying a subset of the
More informationResearch Article A Two-Stage Model for Project Optimization in Transportation Infrastructure Management System
Matheatical Probles in Engineering, Article ID 914515, 8 pages http://dx.doi.org/10.1155/2014/914515 Research Article A wo-stage Model for Project Optiization in ransportation Infrastructure Manageent
More informationFull year and fourth quarter 2017 results
Full year and fourth quarter 2017 results January 22, 2018 Cautionary stateent regarding forward-looking stateents This presentation contains stateents that constitute forward-looking stateents, including
More information