a). Akua intends to save 1,000 a year for her retirement until she is 55 years old, at this age, she will stop paying into the account, though she will retire at 65. If the retirement account earns 10% interest per year, how much will Akua have saved at age 65? She is 35 years at the moment. b). Financial markets and its institutions are seen as the central nervous system of an economy and must be regulated at all times. Discuss the key roles played by financial markets, and outline two (2) reasons why they must be regulated. c). Explain the difference between money market and capital market and mention two (2) securities traded in each of these markets. d). MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial Public Offering which lasted from May 29, 2018 to July 31, 2018. Even though the share sale exceeded the minimum of GH¢348million or 10 percent of the total required for the offer to be declared successful, it still represented only 32.97 percent of the offer. The IPO was promoted using multiple channels as well as other means of purchase-MoMo, digital and other means of transactions in addition to market storms and engagements with stakeholders group across the board. This transaction has enabled Ghanaians from all walks of life to own a share in one of Ghana’s largest, most visible and respected companies. As it stands, MTN appears to be the company with the largest number of Ghanaian shareholders among all listed companies on the GSE. Also, the result of the IPO was reported to have been double the size of all IPOs put together in the history of the Ghana Stock exchange. This feast would not have been achieved without the company meeting certain requirements. Required: Assuming you were the consultant(s) to MTN on discussions leading to going public by MTN Ghana. Write a brief report detailing the economic role(s) of the Ghana Stock Exchange to the Ghanaian economy

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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a). Akua intends to save 1,000 a year for her retirement until she is 55 years old, at this age, she will stop paying into the account, though she will retire at 65. If the retirement account earns 10% interest per year, how much will Akua have saved at age 65? She is 35 years at the moment. b). Financial markets and its institutions are seen as the central nervous system of an economy and must be regulated at all times. Discuss the key roles played by financial markets, and outline two (2) reasons why they must be regulated. c). Explain the difference between money market and capital market and mention two (2) securities traded in each of these markets. d). MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial Public Offering which lasted from May 29, 2018 to July 31, 2018. Even though the share sale exceeded the minimum of GH¢348million or 10 percent of the total required for the offer to be declared successful, it still represented only 32.97 percent of the offer. The IPO was promoted using multiple channels as well as other means of purchase-MoMo, digital and other means of transactions in addition to market storms and engagements with stakeholders group across the board. This transaction has enabled Ghanaians from all walks of life to own a share in one of Ghana’s largest, most visible and respected companies. As it stands, MTN appears to be the company with the largest number of Ghanaian shareholders among all listed companies on the GSE. Also, the result of the IPO was reported to have been double the size of all IPOs put together in the history of the Ghana Stock exchange. This feast would not have been achieved without the company meeting certain requirements. Required: Assuming you were the consultant(s) to MTN on discussions leading to going public by MTN Ghana. Write a brief report detailing the economic role(s) of the Ghana Stock Exchange to the Ghanaian economy.

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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