User Account

All Pages

Computing the size of the fi after changes

Assignment Help Operation Management
Reference no: EM132951456

Netbank has assets of $15 million consisting of $1 million in cash and 14 Million in loans. Netbank has core deposits of $8 million, subordinated debt of $4 million and equity of $3 million. Suppose one of the banks business customers decides to exercise its loan commitment by borrowing $2 million at the pre-specified rate of 9%.

If the bank decides to purchase liquidity and the interest cost of issuing new short-term debt is expected to be 8%, what will be the effect on net interest income? What will be the size of the FI after these changes?

Reference no: EM132951456

Questions Cloud

Define what financial inclusion is : Do you think digital banking is able to withstand the technological evolution and human banking needs in the future? Identify at least two issues associated
Compute forward-looking expected return and risk : Investors need to know how much risk they have to take to confidently expect a certain percentage return. Likewise, managers want to know what return shareholde
What is the yield to maturity on bond : The Saleemi? Corporation's ?$1,000 bonds pay 9 percent interest annually and have 13 years until maturity. You can purchase the bond for ?$1,145.
Calculate each comparable companys earnings : Calculate each comparable company's earnings, EBIT, EBITDA, revenue, and P/E multiples using the adjusted financial statements for Actual Year 0 only
Computing the size of the fi after changes : Netbank has assets of $15 million consisting of $1 million in cash and 14 Million in loans. Netbank has core deposits of $8 million, subordinated debt of $4 mil
Calculate the net present value of project : The company Smart Inc. is a company that produces T-Shirts in Sudbury area. The results of the company, for the past couple of years, have been presented in the
Production budget and sales budget : Raw materials purchase budget for the both type of raw materials and A production budget and sales budget.
Calculate the monthly mortgage payment : Calculate the monthly mortgage payment: The homeowner purchased a property $550,000 and put 20% down payment, interest rate 5%, 30 years.
Why insurance matters : Why Insurance matters. This must be your own word. Not even one sentence can come from another source. Big explanation

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd