Describe the main challenges that Save & Loan institutions faces due to moral hazard, adverse selection, or conflict of interest; as well as the remedies that have been implemented to remedy each of the challenges.

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Deanna HettingerLv2

28 Sep 2019

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please can you give me more details of each question and each answer , please. for the previous questions: Below are 5 scenarios, these are the questions that you should be thinking and writing about ( and graded on ) for each scenario: What is the challenge facing the supervisor? 2. As an HR professional what advice would you give the supervisor? 3. What HR issues are there in the scenario? 4. Are there any legal implications in terms of laws or regulations? Q1- You are a supervisor in a warehousing operation. You recently instituted a âNo Smokingâ policy in the facility. All employees were notified of the policy change. It was not well-received. As you walk down aisle B in the warehouse, you see a cloud of smoke and then see Chris running to aisle A. You need to talk to Chris. Q2- You are an office manager overseeing a department of 25 people. One of your employees comes to you and complains about Patâs unpleasant body odor and how difficult it is to work in the same area. You agree to talk to Pat. Q3- You are the sales department manager at an upscale store. Your boss has talked to you about the appearance of some of your sales clerksâ particularly Alex. Alex is sporting on his forearm a new, large tattoo of a devil eating a rat. You agree with your boss that some customers might find it offensive and that it should somehow be covered up. You need to talk to Alex. Q4 You are the director of human resources. You asked your benefits administrator, Morgan, to immediately send new benefit information to your boss for her review. The next day, you are chewed out by your boss for not sending her the information. You look bad. You decide to talk to Morgan. Q5- You are the vice president of finance. Your administrative assistant, Ryan, is often late getting to work. You have tolerated it for the past year, but your workload has increased and you need all the help you can get, especially at the start of the day. With Ryan coming in late, it is starting to affect your ability to get your job done. You need to talk to Ryan. Please do not make a copy from web. Thanks very much Comment Answer to question No 1: Challenges are: Maintain the Quality of the stock, Proper storage condition of stock and healthy environment of the warehouse. Advise: It should be quality and availability of the stock for smooth running of the business. HR Issue : âNo Smokingâ policy in the facility, All employees were notified of the policy change and It was not well-received. Legal implications in terms of laws or regulations: compliance of Pollution control act & compliance corporate social responsibility, Answer to question No 2: Challenges are: Healthy work environment, Good team and Teamwork Advise : Healthy work environment by ensuring proper working conditions. HR Issues: Unpleasant body odor and difficult work environment. Legal implications : Sexual harassment policy compliance. Answer to question No 3: Challenges are: Quality Products and customer stratification Advise : Staff should be maintain products at customer requirement and cleanness of the department. HR Issues: Alex is sporting on his forearm a new, large tattoo of a devil eating a rat.. Legal implications : compliance of Trade policy. Answer to question No 4: Challenges are: Timely information / MIS and Maintain work hierarchy. Advise : You should have to send the information to your boss instead of asking your administrator. HR Issues: Benefits administrator, Morgan, to immediately send new benefit information to your boss for her review. Legal implications : Non compliance or work hierarchy. Answer to question No 5: Challenges are: Timely & accurately completion of the huge work. Advise : Guide the team for work schedule and time importance. HR Issues: Late getting to work Legal implications : Compliance of work schedule and office timings. Comment

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CHAPTER CASE S&S AIRâS MORTGAGE Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chrisâs analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identified a suitable structure that is currently for sale, and they believe they can buy and refurbish it for about $35 million. Mark, Todd, and Chris are now ready to meet with Christie Vaughan, the loan officer for First United National Bank. The meeting is to discuss the mortgage options available to the company to finance the new facility. Christie begins the meeting by discussing a 30-year mortgage. The loan would be repaid in equal monthly installments. Because of the previous relationship between S&S Air and the bank, there would be no closing costs for the loan. Christie states that the APR of the loan would be 6.1 percent. Todd asks if a shorter mortgage loan is available. Christie says that the bank does have a 20-year mortgage available at the same APR. Mark decides to ask Christie about a âsmart loanâ he discussed with a mortgage broker when he was refinancing his home loan. A smart loan works as follows: Every two weeks a mortgage payment is made that is exactly one-half of the traditional monthly mortgage payment. Christie informs him that the bank does have smart loans. The APR of the smart loan would be the same as the APR of the traditional loan. Mark nods his head. He then states this is the best mortgage option available to the company since it saves interest payments. Christie agrees with Mark, but then suggests that a bullet loan, or balloon payment, would result in the greatest interest savings. At Toddâs prompting, she goes on to explain a bullet loan. The monthly payments of a bullet loan would be calculated using a 30-year traditional mortgage. In this case, there would be a 5-year bullet. This would mean that the company would make the mortgage payments for the traditional 30-year mortgage for the first five years, but immediately after the company makes the 60th payment, the bullet payment would be due. The bullet payment is the remaining principal of the loan. Chris then asks how the bullet payment is calculated. Christie tells him that the remaining principal can be calculated using an amortization table, but it is also the present value of the remaining 25 years of mortgage payments for the 30-year mortgage. Todd has also heard of an interest-only loan and asks if this loan is available and what the terms would be. Christie says that the bank offers an interest-only loan with a term of 10 years and an APR of 3.5 percent. She goes on to further explain the terms. The company would be responsible for making interest payments each month on the amount borrowed. No principal payments are required. At the end of the 10-year term, the company would repay the $35 million. However, the company can make principal payments at any time. The principal payments would work just like those on a traditional mortgage. Principal payments would reduce the principal of the loan and reduce the interest due on the next payment. Mark and Todd are satisfied with Christieâs answers, but they are still unsure of which loan they should choose. They have asked Chris to answer the following questions to help them choose the correct mortgage. QUESTIONS 1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage? 2. Prepare an amortization table for the first six months of the traditional 30-year mortgage. How much of the first payment goes toward principal? 3. How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the traditional mortgage? How much interest would the company save? 4. Assume S&S Air takes out a bullet loan under the terms described. What are the payments on the loan? 5. What are the payments for the interest-only loan? 6. Which mortgage is the best for the company? Are there any potential risks in this action? (Ross 165) Ross, Stephen, Randolph Westerfield, Bradford Jordan. Essentials of Corporate Finance, 8th Edition. McGraw-Hill Learning Solutions, 01/2013. VitalBook file.

Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris had done on financial planning. Using Chrisâs analysis, and looking at the demand for light aircraft, they have decided that their existing fabrication equipment is sufficient, but it is time to acquire a bigger manufacturing facility. Mark and Todd have identified a suitable structure that is currently for sale, and they believe they can buy and refurbish it for about $35 million. Mark, Todd, and Chris are now ready to meet with Christie Vaughan, the loan officer for First United National Bank. The meeting is to discuss the mortgage options available to the company to finance the new facility. Christie begins the meeting by discussing a 30-year mortgage. The loan would be repaid in equal monthly installments. Because of the previous relationship between S&S Air and the bank, there would be no closing costs for the loan. Christie states that the APR of the loan would be 6.1 percent. Todd asks if a shorter mortgage loan is available. Christie says that the bank does have a 20-year mortgage available at the same APR. Mark decides to ask Christie about a âsmart loanâ he discussed with a mortgage broker when he was refinancing his home loan. A smart loan works as follows: Every two weeks a mortgage payment is made that is exactly one-half of the traditional monthly mortgage payment. Christie informs him that the bank does have smart loans. The APR of the smart loan would be the same as the APR of the traditional loan. Mark nods his head. He then states this is the best mortgage option available to the company since it saves interest payments. Christie agrees with Mark, but then suggests that a bullet loan, or balloon payment, would result in the greatest interest savings. At Toddâs prompting, she goes on to explain a bullet loan. The monthly payments of a bullet loan would be calculated using a 30-year traditional mortgage. In this case, there would be a 5-year bullet. This would mean that the company would make the mortgage payments for the traditional 30-year mortgage for the first five years, but immediately after the company makes the 60th payment, the bullet payment would be due. The bullet payment is the remaining principal of the loan. Chris then asks how the bullet payment is calculated. Christie tells him that the remaining principal can be calculated using an amortization table, but it is also the present value of the remaining 25 years of mortgage payments for the 30-year mortgage. Todd has also heard of an interest-only loan and asks if this loan is available and what the terms would be. Christie says that the bank offers an interest-only loan with a term of 10 years and an APR of 3.5 percent. She goes on to further explain the terms. The company would be responsible for making interest payments each month on the amount borrowed. No principal payments are required. At the end of the 10-year term, the company would repay the $35 million. However, the company can make principal payments at any time. The principal payments would work just like those on a traditional mortgage. Principal payments would reduce the principal of the loan and reduce the interest due on the next payment. Mark and Todd are satisfied with Christieâs answers, but they are still unsure of which loan they should choose. They have asked Chris to answer the following questions to help them choose the correct mortgage. QUESTIONS 1. What are the monthly payments for a 30-year traditional mortgage? What are the payments for a 20-year traditional mortgage? 2. Prepare an amortization table for the first six months of the traditional 30-year mortgage. How much of the first payment goes toward principal? 3. How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the traditional mortgage? How much interest would the company save? 4. Assume S&S Air takes out a bullet loan under the terms described. What are the payments on the loan? 5. What are the payments for the interest-only loan? 6. Which mortgage is the best for the company? Are there any potential risks in this action?

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