Kangaroo Bonds are issued by foreign companies in the Australian market in the country under the Australian Dollar (AUD) and they have to comply with the rules and regulations of Australian Securities and Investment Commissions securities. They are also known as Matilda bonds.The primary authority to issue the Kangaroo bond lies with sovereign, universal, and agency (SSA) with others following suit. Kangaroo bonds can be issued by international banks, financial institutions, and overseas corporations as well as individuals. The recent trend has seen a decline in their numbers due to the lower ratings.What are the benefits of a Kangaroo Bond?With ... Read More

Kamikaze defense techniques have been used by Japanese Pilots in World War II, but they are a successful utility tool for firms to prevent hostile takeover. They are employed by an organization to preserve its self-interest, the financial position of the organization. The objective of this method is to reduce the target company’s demand to a hostile bidder by decreasing its market capitalization. This is implemented as a protective defense by most firms to prevent takeovers.Kamikaze Defense: What You Should KnowA kamikaze defense is a tactic that a target firm utilizes to escape being taken over by a hostile bidder. ... Read More

Traders use the Kairi Relative Index to determine whether it is appropriate to purchase or sell a certain asset. It analyzes the price's divergence from the simple moving average (SMA) of that asset's price over a given period of time, which is commonly 10 to 20 days.If the price of an asset is much higher than the asset's simple moving average over a specified time period, the Kairi Relative Index encourages selling. Whenever the price of a security is much lower than the simple moving average, the index supports purchasing the security.Kairi Relative Index in a GlanceThe Kairi Relative Index ... Read More

The Kagi chart is a graph that displays the price fluctuations of a certain asset over a period of time. A Kagi chart varies completely from a candlestick chart or other traditional forms of charts as it does not have a time axis, which helps it to display price movements more efficiently. Kagi charts are statistical tool used to help in technical analysis. It has been developed in Japan and used extensively worldwide by traders.What are the uses of Kagi Charts?A Kagi chart depicts the Price fluctuations of an item by using a number of vertical lines that are connected ... Read More

The isoquant curve is characterized by a concave shaped line graph that measures all the components of inputs, that contribute to a specific amount of output production. They are usually employed in the study of Microeconomics as a measure to evaluate the most commonly studied inputs of capital and labor, and the impact they have on manufacturing.An example illustration of an isoquant curve below −The isoquant curve aids corporations and enterprises in making modifications to inputs in order to optimize output and, therefore, profit.Companies and enterprises use the isoquant curve to make modifications in inputs to maximize manufacturing, and thus ... Read More

What is the Bond Pricing System?Bond pricing is a measurement system that helps traders and financial enthusiasts keep track of bond prices before trading bonds with other investors. The price that one has to pay while purchasing the bond is the price of the bond and it is dependent on several factors likeThe following are some of these characteristics −The existence of a coupon, or the absence of oneValue of the main and parReturn on investment (ROI)Periods of development till maturityBond Pricing − What factors impact it?Coupons$$\frac{1-(1+r/n)^{-n*t}}{r/n}+\frac{F}{{1+(1+r/n)^{-n*t}}}$$Formula to calculate coupon bond price.Some bands come with the coupons while others do ... Read More

Bollinger Bands are a technical trading system developed by John Bollinger in the early 1980s to help traders calculate price movements. These trading bands were developed in response to the necessity for adaptive trading bands and the detection that volatility was dynamic, rather than static as was normally assumed at the time.Source − Tradingview. Chart of Ketner Channel & Bollinger BandsBollinger Bands are a technical indicator that are used in many financial markets, including stocks, currency, commodities, and futures trading. They may be utilized in a variety of time frames, ranging from very short time periods to hourly, daily, weekly, and ... Read More

Operation cycle method considers total cycle of operations, from raw materials to finished goods, from accounts payable to net cash.The times taken to complete these operations are called operating cycle time.If the operating cycle is long then, requirement of working capital is less, if the operating cycle is less then, requirement of working capital is less.FormulasWorking capital = CGS(E)* D/365 + CBHere, CGS (E) = estimated cost of goods sold, D = days in operating cycle, CB = Cash/Bank balanceRM Stock = PU(E) * Cu * (Hp/365)Here, PU(E) = production units estimated, Cu = cost per unit, HP = holding ... Read More

In regression analysis method, statistical tool is used to calculate working capital.CalculationsWorking capital = Int + m*R            Int = intercept, m = slope, R = RevenueΣy = na + bΣxΣxy = aΣx + bΣ2            Where x = sales, y = working capital, n = yearsAdvantages of this method include −Accurate method for bigger volume of data.It is a proven method.Disadvantages of this method include −Not east to understand.Calculations are complicated as compared to percentage sales method.ExampleBy using following table, calculate the data using regression analysis method, forecasted sales = 500YearSales ... Read More

Percentage of sales method is the traditional method to find out working capital. This method is based on historical relationship between sales and working capital. Each of historical value is converted to percentage of net sales and those values are used to forecast.Steps involved in this method are −Determine historical relationship between sales and working capital.Forecast sales for future date.Apply percentage sales of method to get forecasted value.FormulaPercentage of sales method = WCc*100/S Here WCc = components of working capital, S = yearly salesAdvantages of this method are −Easy to understand.Calculations are simple.Disadvantages of this method are −Relationship between sales ... Read More