Based on the information provided belowabout banks A and B, compute for each bankits return on assets (ROA), return on equity(ROE) and Equity Multiplier. Show your work.a. Bank A has net profit after taxes of $2.38million and the balance sheet below: Bank A(in millions) Assets Liabilities Reserves $10Deposits $100 Loans $80 Borrowing $15Securities $50 Bank Capital $25b. Bank B has net profit after taxes of $1million and the balance sheet below: Bank B(in millions) Assets Liabilities Reserves $8Deposits $75.0 Loans $60 Borrowing $5.0Securities $22 Bank Capital $10.0

Balance sheet for both the banks are shown as below:

Answered: Based on the information provided below…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Aa.6. You know the following information about the Davis National Bank: Total interest expenses $500.00 Total Noninterest income $100.00 Securities gains (losses) $50.00 Income taxes $80.00 Dividends to stockholders $40.00 Total interest income $800.00 Total noninterest expenses $150.00 Provision for loan losses $100.00 Given this information, what is the value of this firm’s pretax net operating income?
As loan analyst for Carla Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $124,000 $335,000 Receivables 214,000 305,000 Inventories 589,000 523,000 Total current assets 927,000 1,163,000 Other assets 482,000 582,000 Total assets $1,409,000 $1,745,000 Liabilities and Stockholders’ Equity Current liabilities $301,000 $368,000 Long-term liabilities 409,000 482,000 Capital stock and retained earnings 699,000 895,000 Total liabilities and stockholders’ equity $1,409,000 $1,745,000 Annual sales $946,000 $1,559,000 Rate of gross profit on sales 30 % 40 % Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be…
ased on these items, what is the total of the (a) liquid assets and (b) current liabilities? Checking account balance $ 935 Savings account balance $ 3,425 Retirement account balance 58,500 Current student loan payment due 370 Credit card balance 192 Investment account balance 9,500 Rare jewelry 600 Mortgage 185,500
Karen’s Diner has provided the following financial information: cashand marketable securities = $250,000, accounts receivable =$1,350,000, inventory = $2,770,000, accrued wages and taxes=$455,000, accounts payable = $911,000, and notes payable =$550,000. Find the net working capital (Round to the nearest dollar amount)
You are evaluating the balance sheet for SophieLex’s Corporation. From the balance sheet you find the following balances: cash and marketable securities = $280,000; accounts receivable = $1,380,000; inventory = $2,280,000; accrued wages and taxes = $590,000; accounts payable = $890,000; and notes payable = $780,000. What is the quick ratio (round your answer to 2 decimal places
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
You are evaluating the balance sheet for SophieLex's Corporation. From the balance sheet you find the following balances: cash and marketable securities = $450,000; accounts receivable = $1,100,000; inventory = $2,000,000; accrued wages and taxes = $450,000; accounts payable = $750,000; and notes payable = $500,000. Calculate SophieLex's current ratio.
The following information is extracted from Satellite Bank's balance sheet (all numbers are in millions of dollars). Assets (with liquidity levels in the parentheses) are: • Cash $38 Treasury securities $50 • AAA-rated Commercial Loans $280 (Level 2A) • Residential mortgage-backed securities $110 (Level 2B) • Land and buildings $40 Liabilities (with Run-off factors in the parentheses) are: Stable retail deposits $180 (3%) • Less stable retail deposits $50 (10%) • Less stable small business deposits $50 (10%) • Unsecured wholesale funding non-financial corporates $130 (75%) Assume that a 15% haircut applies to Level 2A assets and a 25% haircut applies to level 2B assets. Assume further that the amount of Level 2 assets in the stock of HQLA is capped at 2 of the amount of Level 1 assets. Cash inflows over the next 30 days from the bank's performing assets are $15 million. What is the bank's Liquidity Coverage Ratio (LCR)? a. 149.81% b. 98.74% c. 417.26% d. 129.91% O e. None of the other…
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