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The financial statements for MHM Bank (MHM) are shown below: Calculate the dollar value of MHM’s earning assets. Calculate the dollar value of MHM’s interest-bearing liabilities. Calculate MHM’s spread.

The financial statements for MHM Bank (MHM) are shown below: Calculate the dollar value of MHM’s earning assets. Calculate the dollar value of MHM’s interest-bearing liabilities. Calculate MHM’s spread.

Essentials Of Investments
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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The financial statements for MHM Bank (MHM) are shown below:

  1. Calculate the dollar value of MHM’s earning assets.
  2. Calculate the dollar value of MHM’s interest-bearing liabilities.
  3. Calculate MHM’s spread.
  4. Calculate MHM’s interest expense ratio.

 

Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due Demand $ 1,920 from banks Demand deposits at other FIs deposits Small time deposits $10,620 1,100 10,350 Investments 6,080 Jumbo CDs 7,670 Federal funds Federal funds sold 2,990 purchased 470 Loans (less Other reserve for liabilities 2,000 loan losses of 2,400) 20.040 Equity 3,290 Premises 2,270 Total Total assets $34,400 liabilities/equity $34,400 Income Statement MHM Bank Interest income $4,048 Interest expense 2,024 Provision for loạn losses Noninterest income 100 700 Noninterest expense 975 Taxes 235
Transcribed Image Text:Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due Demand $ 1,920 from banks Demand deposits at other FIs deposits Small time deposits $10,620 1,100 10,350 Investments 6,080 Jumbo CDs 7,670 Federal funds Federal funds sold 2,990 purchased 470 Loans (less Other reserve for liabilities 2,000 loan losses of 2,400) 20.040 Equity 3,290 Premises 2,270 Total Total assets $34,400 liabilities/equity $34,400 Income Statement MHM Bank Interest income $4,048 Interest expense 2,024 Provision for loạn losses Noninterest income 100 700 Noninterest expense 975 Taxes 235
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