Patent
1995-08-29
1998-06-02
Hayes, Gail O.
G06F 1760
Patent
active
057614415
ABSTRACT:
A data processing system analyzes a stock investment limited recourse borrowing contract. The system receives and processes as input data on the date of analysis (1) contract data including the identity and amount of the collateral stock, the amount of the initial loan and the minimum and maximum interest rate percentages payable by the investor under the contract; (2) actual data relating to the stock prior to the analysis date including its market prices per share at selected regular intervals and the dividends per share paid in a selected number of quarters; and (3) estimated data relating to the stock from the analysis date to the end of the contract term including its estimated market price per share at intervals and the estimated dividends per share to be paid. The programmed processor processes the input data and produces as output data (1) calculated average growth rates of market prices per share and dividends per share; (2) projected amounts of interest to be paid by the investor in each period of the contract and of the amounts and timing of principal repayments to be made by the investor to the lender; and (3) projected average internal rates of return to both the investor and the lender over the life of the contract on their investments under the contract by discounting over the contract term all of the inflows and outflows of value to the investor and to the lender based on actual and projected market prices per share and dividends per share.
Hayes Gail O.
Oh Junghoon Kenneth
LandOfFree
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