Calculating and Interpreting Risk Ratios. Refer to the financial statement data for Hasbro in Problem 4.24 in Chapter 4. Exhibit 5.15 presents risk ratios for Hasbro for Year 2 and Year 3. Exhibit 5.15 REQUIRED a. Calculate the amounts of these ratios for Year 4. b. Assess the changes in the short-term liquidity risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4. c. Assess the changes in the long-term solvency risk of Hasbro between Year 2 and Year 4 and the level of that risk at the end of Year 4.

What do the following data, taken from a comparative balance sheet, indicate about the companys ability to borrow additional long-term debt in the current year as compared to the preceding year?

The best approach to measuring liquidity takes into account changes over time in both liquidity needs and sources.  A financial ratio that does this consists of                          in period t over                    in period t. liquid assets and liabilities; estimated liquidity needs liquid assets; estimated liabilities estimated reserve needs; liquid assets and liabilities liabilities; estimated liquid assets     Given the following information: interest sensitive assets = $300 30-day commercial paper interest sensitive liabilities = $400 90-day CDs 30-day commercial paper is 50 percent as volatile as 90-day T-bills 90-day CDs are 120 percent as volatile as 90-day T-bills Calculate the standardized gap for the bank. A. $160 B. $563 C. -$100 D. -$330     All else the same, a positive duration gap causes the liquidity of the bank to: A. Increase B. decrease C. change only when the level of interest rates is high D. change only when the level of interest rates is low     If the…