QUESTION 15 1.A company's Book Value is $100 million, with 2 million shares outstanding. Its market value is 20% above book value. 2 points each...
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QUESTION 15Its market value is 20% above book value.  2 points each

1.A company's Book Value is $100 million, with 2 million shares outstanding.

Suppose the company issues 100 thousand additional shares, which required a decline in price per-share of 8%. 

Calculate:

Q. New book value per-share


QUESTION 16


A company's Book Value is $100 million, with 2 million shares outstanding.

Its market value is 20% above book value.  2 points each

Suppose the company issues 100 thousand additional shares, which required a decline in price per-share of 8%. 

Calculate:

Q. New book value per-share

Please fill in this box using the result of the previous question, these two questions are the same.

Note: Please round up your answer to two decimal places

(e.g., if your answer is 170.124 -> you need to write down 170.12 in the blank

     if your answer is 170.127 -> you need to write down 170.13 in the blank)


QUESTION 17

1.Here is Simple Bank's balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares, 3.3%

$100 million Common Shares



4 points each

 

Q. Calculate the bank's Net Interest Margin, nothing that dividends on preferred shares are not included (because they are not interest):



QUESTION 18

1.Here is Simple Bank's balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares, 3.3%

$100 million Common Shares



4 points each

 

Q. Calculate the bank's Net Interest Margin, nothing that dividends on preferred shares are not included (because they are not interest):

Please fill in this box using the result of the previous question, these two questions are the same.

Note: Please round up your answer to two decimal places

(e.g., if your answer is 170.124 -> you need to write down 170.12 in the blank

     if your answer is 170.127 -> you need to write down 170.13 in the blank)


QUESTION 19

1.Here is Simple Bank's balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares, 3.3%

$100 million Common Shares



4 points each

Q. If capital requirements are 8% for loans and 6% for bonds, calculate the bank's capital excess or deficiency.


QUESTION 20

1.Here is Simple Bank's balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares, 3.3%

$100 million Common Shares

Q. If capital requirements are 8% for loans and 6% for bonds, calculate the bank's capital excess or deficiency.

Please fill in this box using the result of the previous question, these two questions are the same.

Note: Please round up your answer to two decimal places

(e.g., if your answer is 170.124 -> you need to write down 170.12 in the blank

     if your answer is 170.127 -> you need to write down 170.13 in the blank)


QUESTION 21

  1.   If two securities promise the same cash flow at a specific future date, the one with the higher price must have _______ rate of discount:

          a higher

          a lower

the same

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