User Account

All Pages

How does this affect its capital position

Assignment Help Finance Basics
Reference no: EM131128280

Bank regulators force Oldhat to sell its mortgages to recognize the fair market value. What is the accounting transaction? How does this affect its capital position?

Reference no: EM131128280

Questions Cloud

The important dates in connection with a cash dividend : The important dates in connection with a cash dividend of $69,500 on a corporation’s common stock are May 3, June 17, and August 1. Journalize the entries required on each date.
What will be the impact on its capital ratio : Oldhat decides to invest the $77 million in excess reserves in commercial loans. What will be the impact on its capital ratio? Its risk-weighted capital ratio?
What would be the annual adjustment : Congress allowed Oldhat to amortize the loss over the remaining life of the mortgage. If this technique was used in the sale, how would the transaction have been recorded? What would be the annual adjustment? What does Oldhat’s balance sheet look lik..
Issued shares of preferred stock : Mar. 6. Issued 18,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $50,000, $275,000, and $60,000, respectively
How does this affect its capital position : Bank regulators force Oldhat to sell its mortgages to recognize the fair market value. What is the accounting transaction? How does this affect its capital position?
What is the market value of oldhats mortgages : The next day, terrible news hits the mortgage markets, and mortgage rates jump to 13%. What is the market value of Oldhat’s mortgages? What is Oldhat’s “market value” capital ratio?
Calculate the risk-weighted assets and risk weighted capital : Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat’s first day.
Journalize the two entries to record the transactions : All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.
The corporation agreed to assume responsibility : The corporation agreed to assume responsibility for paying the mortgage note and the accrued interest.Journalize the entries to record the transactions.

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute average annual rate of return

Suppose you are considering how to finance your child's college education. The child is 3 years old now so there are 15 years to go before your child enters college at age eighteen.

  Extend the syntax-directed definition

Extend the syntax-directed definition of Fig. 5.22 to keep track. of the widths of boxes in addition to keeping track of their heights. Assume that terminal text has synthesized attribute w giving the normalized width of the text.

  Why is this afn different from the one you found

Refer to Problem 16-1. What additional funds would be needed if the company's year-end 2008 assets had been $4 million? Assume that all other numbers are the same. Why is this AFN different from the one you found in Problem 16-1? Is the company's "ca..

  Calculate the average rate of return

Suppose that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. Determine the realized rate of return on the portfolio have been in each year?

  Six months ago you invested 350000 to become a partner in a

six months ago you invested 350000 to become a partner in a medical practice in which you have a 50 ownership interest.

  Capital from the same sources

The company's CFO argues that, even though the company's projects have different risks, the cost of capital for each project should be the same because the company obtains its capital from the same sources. If the company follows the CFO's advice,..

  Calculate the values for the following four formulas

Calculate the values for the following four formulas:Total Variable Cost = (Number of Workers x Worker's Daily Wage) + Other Variable Costs

  Calculate the annual depreciation allowances

A piece of newly purchased industrial equipment costs $970,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment.

  The continuously compounded annual risk-free interest rate

The continuously compounded annual risk-free interest rate is 2% and there are notransaction costs.1. What should be the price of the call option? (2 marks)2. Assume that the call option on Apple with strike price $90 and maturity in one year iscurre..

  What was the percentage change in the price of the bond

A company issues a ten-year bond at par with a coupon rate of 6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%. What was the percentage change in the price of the bond over the past t..

  You want to withdraw 3000 once year at the begining of each

you want to withdraw 3000 once year at the begining of each year for 5 years. r8. how much money do you need to

  A coupon bond that pays interest semi-annually has a par

1.a coupon bond that pays interest semi-annually has a par value of 1000 matures in 7 years and has a yield to maturity

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