Question
Consider the following income statement for WatchoverU Savings Inc. (in millions): Assets Liabilities Floating-rate mortgages (currently...
Consider the following income statement for WatchoverU Savings Inc. (in millions):
| Assets | Liabilities | ||||
|
Floating-rate mortgages (currently 14% annually) |
$ | 56 | NOW
accounts (currently 10% annually) |
$ | 76 |
|
30-year fixed-rate loans (currently 11% annually) |
56 | Time
deposits (currently 10% annually) |
24 | ||
| Equity | 12 | ||||
| Total | $ | 112 | $ | 112 | |
| a. |
What is WatchoverU’s expected net interest income at year-end? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) |
| Net interest income | $ million |
| b. |
What will be the net interest income at year-end if interest rates rise by 3 percent? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) |
| Net interest income | $ million |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Consider the following income statement for WatchoverU Savings Inc. (in millions): Assets Liabilities Floating-rate mortgages (currently...
Consider the following income statement for WatchoverU Savings
Inc. (in millions):
Assets
Liabilities
Floating-rate
mortgages
(currently 14% annually)
$
68
NOW accounts
(currently 10% annually)
$
88
30-year fixed-rate
loans
(currently 11% annually)
68
Time deposits
(currently 10% annually)
38
Equity
10
Total
$
136
$
136
a.
What is WatchoverU’s expected net interest income at year-end?
(Do not round intermediate calculations. Enter your answer
in millions rounded to 2 decimal places. (e.g.,
32.16))
Net interest
income
$ million
b.
What...
19-1 Consider the following income statement for WatchoverU Savings Inc. (in millions): Assets Liabilities Floating-rate mortgages...
19-1
Consider the following income statement for WatchoverU Savings
Inc. (in millions):
Assets
Liabilities
Floating-rate
mortgages
(currently 12% annually)
$
58
NOW accounts
(currently 8% annually)
$
78
30-year fixed-rate
loans
(currently 9% annually)
58
Time deposits
(currently 8% annually)
24
Equity
14
Total
$
116
$
116
a.
What is WatchoverU’s expected net interest income at year-end?
(Do not round intermediate calculations. Enter your answer
in millions rounded to 2 decimal places. (e.g.,
32.16))
Net interest
income
$ million
b....
Consider the following balance sheet for Watchover Savings, Inc. (in millions): Assets Liabilities and Equity Floating-rate...
Consider the following balance
sheet for Watchover Savings, Inc. (in millions):
Assets
Liabilities and Equity
Floating-rate
mortgages
(currently 13% p.a.)
$
88
Now deposits
(currently 9% p.a.)
$
125
30-year fixed-rate
loans
(currently 10% p.a.)
110
5-year time
deposits
(currently 9% p.a.)
32
Equity
41
Total
$
198
Total
$
198
a.
What is Watchover’s expected net interest income at year-end?
(Enter your answer in millions rounded to 2 decimal places.
(e.g., 32.16))
Net interest
income
$ million
b.
What...
last answer is not 4.6 19-1 Consider the following income statement for WatchoverU Savings Inc. (in...
last answer is not 4.6
19-1
Consider the following income statement for WatchoverU Savings
Inc. (in millions):
Assets
Liabilities
Floating-rate
mortgages
(currently 12% annually)
$
58
NOW accounts
(currently 8% annually)
$
78
30-year fixed-rate
loans
(currently 9% annually)
58
Time deposits
(currently 8% annually)
24
Equity
14
Total
$
116
$
116
a.
What is WatchoverU’s expected net interest income at year-end?
(Do not round intermediate calculations. Enter your answer
in millions rounded to 2 decimal places. (e.g.,
32.16))...
Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets (currently 12% p.a.) $...
Consider the following balance sheet for Watchover Savings Inc.
(in millions): Assets
(currently 12% p.a.) $ 82
30-year fixed-rate loans (currently 9% p.a.) 101
Liabilities and equity
Now deposits (currently 8% p.a.)
$
116
5-year time deposits (currently 8% p.a.) $29
Equity $38
Total $ 183
a. What is Watchover’s expected net interest income at year-end?
(Enter your answer in millions rounded to 2 decimal places. (e.g.,
32.16))
b. What will be the net interest income at year-end if interest...
Total assets are $13.7million, while sales are $18.7million, and total liabilities are $4.5 million. Profit margin...
Total assets are $13.7million, while sales are $18.7million, and
total liabilities are $4.5 million. Profit margin equals 10%.
Requirement 1:
What is net income? (Do not round intermediate
calculations. Enter your answer in dollars, not
millions of dollars (e.g., 1,234,567).)
Net income
$
Requirement 2:
What is ROA? (Do not round intermediate
calculations. Enter your answer as a percent
rounded 2 decimal places (e.g., 32.16).)
ROA
%
Requirement 3:
What is ROE? (Do not round intermediate
calculations. Enter your answer...
Hedge Row Bank has the following balance sheet (in millions): Assets $170 Liabilities $102 Equity 68...
Hedge Row Bank
has the following balance sheet (in millions):
Assets
$170
Liabilities
$102
Equity
68
Total
$170
Total
$170
The duration of the
assets is 7 years and the duration of the liabilities is 5.2 years.
The bank is expecting interest rates to fall from 10 percent to 9
percent over the next year.
a.
What is the duration
gap for Hedge Row Bank? (Round your answer to 2 decimal
places. (e.g., 32.16))
Duration gap
years
b.
What is...
Cheer, Inc., wishes to expand its facilities. The company currently has 8 million shares outstanding and...
Cheer, Inc., wishes to expand its facilities. The company
currently has 8 million shares outstanding and no debt. The stock
sells for $34 per share, but the book value per share is $42. Net
income for Teardrop is currently $4.7 million. The new facility
will cost $50 million and will increase net income by $800,000. The
par value of the stock is $1 per share. Assume a constant
price-earnings ratio.
a-1.
Calculate the new book value per share. Assume the...
Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities...
Megalopolis Bank has the following balance sheet and income
statement.
Balance Sheet (in millions)
Assets
Liabilities and Equity
Cash and due from banks
$
9,800
Demand deposits
$
27,000
Investment securities
31,000
NOW accounts
97,000
Repurchase agreements
50,000
Retail CDs
36,000
Loans
98,000
Debentures
27,000
Fixed assets
23,000
Total liabilities
$
187,000
Other assets
4,800
Common stock
12,000
Paid-in capital
4,000
Retained earnings
13,600
Total assets
$
216,600
Total liabilities and equity
$
216,600
Income Statement
Interest on fees and...
Cheer, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and...
Cheer, Inc., wishes to expand its facilities. The company
currently has 12 million shares outstanding and no debt. The stock
sells for $27 per share, but the book value per share is $36. Net
income for Teardrop is currently $5.1 million. The new facility
will cost $60 million and will increase net income by $920,000. The
par value of the stock is $1 per share. Assume a constant
price-earnings ratio.
a-1.
Calculate the new book value per share. Assume the...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 3 minutes ago
asked 3 minutes ago
asked 7 minutes ago
asked 35 minutes ago
asked 43 minutes ago
asked 50 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago