Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes 2,224 1,100 800 1,075 335 . Calculate the dollar value of MHM's earning assets. . Calculate the dollar value of MHM's interest-bearing liabilities. Calculate MHM's spread. (Do not round intermediate calculations. Round your percent 2.161)) . Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal p a. MHM's earning assets D. MHM's interest-bearing liabilities C. MHM's spread d. MHM's interest expense ratio % %
Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes 2,224 1,100 800 1,075 335 . Calculate the dollar value of MHM's earning assets. . Calculate the dollar value of MHM's interest-bearing liabilities. Calculate MHM's spread. (Do not round intermediate calculations. Round your percent 2.161)) . Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal p a. MHM's earning assets D. MHM's interest-bearing liabilities C. MHM's spread d. MHM's interest expense ratio % %
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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Transcribed Image Text:The financial statements for MHM Bank (MHM) are shown below:
Assets
Cash and due from banks
Demand deposits at other FIS
Investments
Federal funds sold
Loans (less reserve for loan losses of
3,400)
Premises
Total assets
Income Statement MHM Bank
Interest income
Interest expense
Provision for loan losses
Noninterest income
Noninterest expense
Taxes
a. MHM's earning assets
b.
MHM's interest-bearing liabilities
Balance Sheet MHM Bank
$ 2,020
2,100
6,280
3,090
20,260
2,370
$36, 120
C. MHM's spread
d. MHM's interest expense ratio
$ 4,258
2,224
1,100
800
1,075
335
Liabilities and Equity
a. Calculate the dollar value of MHM's earning assets.
b. Calculate the dollar value of MHM's interest-bearing liabilities.
c. Calculate MHM's spread. (Do not round intermediate calculations. Round your percentage answer to 3 decimal places. (e.g.,
32.161))
d. Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal places. (e.g., 32.161))
%
%
Demand deposits
Small time deposits
Jumbo CDs
Federal funds purchased
Other liabilities
Equity
Total liabilities/equity
$ 10,720
10,450
7,770
570
3,220
3,390
$36, 120
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