User Account

All Pages

List of entries on balance sheet-alexander bank

Assignment Help Finance Basics
Reference no: EM132498154

Alexander Bank has the following list of entries on its balance sheet. All figures are in million dollars:

- Reserves $10

- Chequable deposits $60

- Loans $60

- Capital $20

- Securities $30

- Borrowings $20

  • The manager estimates the average duration of assets to be 4 years, and average duration of liabilities to be 1 year. Now market interest rate falls from 4% to 2.5%. How would this bank's net worth change? Show your calculation for full mark.
  • Suppose the bank's rate-sensitive assets are $30m, and rate-sensitive liabilities are $60m. What will happen to its profit when the market interest rate falls from 4% to 2.5%? Show your calculation for full mark.

Reference no: EM132498154

Questions Cloud

Write down the balance sheet for alexander bank : Alexander Bank has the following list of entries on its balance sheet. All figures are in million dollars:
Explain the reason for the phenomenon : Explain the reason for the following phenomenon: At parties in which several conversations are simultaneously in progress, it is common for everybody
Find the deadweight loss in profit-maximizing equilibrium : If a single firm whose marginal cost is MC = 100 + 0.3Q monopolized the market, find the deadweight loss in the profit-maximizing equilibrium.
How many workers will a profit-maximizing firm hire : A firm produces pencils and sells them at a price of 10 cents a pencil. The wage rate is $14.50/hour. Here's the estimated production function for the firm:
List of entries on balance sheet-alexander bank : Alexander Bank has the following list of entries on its balance sheet. All figures are in million dollars:
What is the approximate price elasticity of demand : What is the approximate price elasticity of demand between these two prices?
Explain in the context of hmsi : Explain in the context of HMSI case how better wages and perquisites alone cannot suppress forever, the workers' demands for the exercise of their legitimate ri
How can the government finance this increased expenditure : Drawing from the statement above, how can the government finance this increased expenditure.
Essay on gender and culture : Essay on Gender and Culture this book is by Lee A. Jacobus. Please make this paper using the MLA format make sure it is double space.

Reviews

Write a Review

Finance Basics Questions & Answers

  Yahoo is 33 a share you decide to buy 10 april 38 call

yahoo is 33 a share. you decide to buy 10 april 38 call options premium of 2.00. if yahoo goes up to 42 a share by

  What is the current stock price

A stock just paid a dividend of $1.2. The required rate of return is 11.5%, and the constant growth rate is 3.6%. What is the current stock price.

  Calculate the coefficient of variation

Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship: Company A: Std. Dev: 10.4 Exp Return: 13.2 Company B: Std. Dev: 7.6. Exp Return: 8.7

  Suppose that a bank has 10 billion of one-year loans and 30

suppose that a bank has 10 billion of one-year loans and 30 billion of five year loans. these are financed by 35

  What is the conversion price pc

Convertible debentures for Kulik Corp. were issued at their $1,000 par value in 2012. At any time prior to maturity on February 1, 2032, a debenture holder can exchange a bond for 25 shares of common stock.

  Is smoking a significant factor in the risk of a stroke

Is smoking a significant factor in the risk of a stroke? Explain. Use a 0.05 level of significance.

  Three-year bond futures contract

What profit (or loss) has she made in the three-year bond futures contract?

  What is the present value

A 20-year annuity pays $1,300 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the a..

  What is the company cost of equity capital

The Graber Corporation's common stock has a beta of 1.15. If the risk is 3.5% and the expected return on the market is 11%, what is the company's cost of equity

  Which of the following is relevant to kitchenwarecoms

which of the following is relevant to kitchenware.coms decision to accept a special order at a lower sale price from

  Calculate the npv of the decision to change credit policies

The required return is 2.5 percent per period. Current Policy New Policy Price per unit $ 104 $ 108 Cost per unit $ 47 $ 47 Unit sales per month 3,240 3,295 Calculate the NPV of the decision to change credit policies.

  Calculate the interest rate in germany

The interest rate in the United States is 4%, and the euro is trading at 1 euro per dollar. The euro is expected to depreciate to 1.1 euros per dollar. Calculate the interest rate in Germany.

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