Therefore, debt investors demand a lower rate of return than equity investors. If external debt or equity is to be used, where should it be raised from and in which form? When it comes to equity finance, for some companies, the new shares must be offered to the existing shareholders in proportion to their existing holdings. With debt finance, short-term loans are cheaper than long-term borrowings. (Jay, 2003,
Although, there is nothing that makes British English more valuable or better than Nigerian English, this is how the people of Nigeria willingly sign up to their own domination. They fail to understand that either dialect of English will allow them to communicate competently. Knowing how to speak British English is not going to make an individual a competent speaker of the English language nor is it going to help people understand what you are trying to communicate. Unfortunately, the people of Nigeria fell victim to ideological domination by believing that people who speak British English ought to be respected and must be smarter than someone who does not speak British English. There is nothing inherent that makes British English better than Nigerian English.
Government bonds can be described as a debt security issued by a government to sustain government expenses. Government debt is money owed by any level of government and is financed by the full faith of the government. The terms on which a government can sell bonds depend on how creditworthy the market considers it to be. Government bonds are seen as a good way of preserving capital while generating a reticent return every year. Most governments around the world rely on the issuing of new bonds to cover their deficit spending.
We do our best so none of our clients have to go through any kind of financial crisis due to tax debt. Our main focus is dealing with the IRS, so you don’t have to. Our company understands not everyone is not capable of coming up with a large amount of money at once. Hence, we talk to the tax authorities’ in order to help find option that will work for both the parties. Options like ‘Installment Agreement’ works great as it gives you the opportunity to pay the money in smaller payments.
Fiakpe (2009) in his study of Nigeria Savings Market stated that the interest paid on savings deposit is usually the least but the cost of administration could be much considering the retail nature of the market. However, pooled together, funds from this market constitute a veritable source of cheap money for banking business. The more of these funds a bank can garner, the cheaper it would be for it to transact business. It is for these reasons that most banks are deploying men and resources to explore this market the more. Fiakpe (2009) is of the opinion that compared with other market segments, the savings market is still the least developed, an indication that not much has been done to mobilize sufficient funds from the informal sector of
There are many instances in which these types of loans take the form of co-financing with the World Bank and other multilateral development banks 2. Commodity loans In order to stabilize their economy, commodity loans provide settlement funds for urgent and essential imports of materials to developing countries that are experiencing a worsening foreign currency situation and facing economic difficulties. These loans are often used to import commodities such as industrial machinery and raw materials, fertilizer and pesticide, agricultural and other kinds of machinery, which are agreed upon beforehand between the Japanese and recipient governments. 3. Sector program
The banking system in Nigeria uses financial incentive, which generally causes impact on monetary gift as an incentive has become very easy to see in banks’ sales promotion. This can be in form of cash reward, salary for life, scholarship, reduction in interest rate and so on. The banking system in Nigeria makes use of those tools that are capable of delivering a desired result. Therefore, banking aim at gaining larger proportion of the market share cause them to create a sector within the bank called “marketing department,” which was established solely to create sales for the company’s products and services. Going by this, marketing helps customers to get the product at
Nigeria has adopted various exchange rate regimes since the post independence era. The system operated by Nigeria before 1973 put naira on par with a dollar, it was a fixed exchange rate system which was in harmony with the Bretton Woods pegged system and subsequently after the collapse of the system Nigeria later in 1986 adopted a deregulated system by allowing naira to find its way in the currency market - the floating exchange rate 2.1.4 Importance of exchange rate Exchange rate remains a very important variable for the attainment of macroeconomic objectives. This is because it has effect on macroeconomic variables. It facilitates international transactions and hence, has implications on other price variables and the general price level. The important role it plays makes governments to take active interest in it.
Debt will become more attractive in an inflationary environment, based on the liability side of the balance sheet. Allocating a longer-term fixed-rate is something business should mainly consider in regards to whose real interest rate will decrease as the inflation increases and increase their leverage. In depreciating currencies borrowing while having their financial assets in appreciating currencies, as for multinational firms, will be a way to further weight the balance sheet in an inflationary environment. It is advantageous especially for businesses producing for global demand and the reason being stated as advantageous is having assets in countries with depreciating currencies and higher