Question
1/ The financial statements for ABC National Bank are shown below: Balance sheet ABC National Bank Assets Liabilities and Equity Cash and due from depository
1/ The financial statements for ABC National Bank are shown below:
Balance sheet ABC National Bank
Assets | Liabilities and Equity | ||
Cash and due from depository institutions | $800 | Interest-bearing deposits | $4,000 |
Securities | $1000 | Noninterest-bearing deposits | $2,450 |
Fed funds sold and securities purchased under agreements to resell | $900 | Trading liabilities | $350 |
Net loans and leases | $6,900 | Other liabilities | $300 |
Total assets | $9,600 | Total liabilities | $7,100 |
|
| Total equity capital | $2,500 |
|
| Total liabilities and equity capital | $9,600 |
Income statement ABC National Bank
Interest income | $2,450 |
Interest expense | $1,630 |
Provision for loan losses | $80 |
Noninterest income | $240 |
Noninterest expense | $410 |
Income taxes | $40 |
Net income | $530 |
a/ What is the dollar value of Earning assets held by ABC National Bank?
b/ What is the dollar value of Interest-bearing liabilities held by ABC National Bank?
c/ What is the ABC National Banks Net interest income?
d/ What is the ABC National Banks Net interest margin (NIM)?
e/ What is the ABC National Banks Spread?
f/ What are the ABC Banks ROA and ROE?
g/ What is the ABC Banks Total operating income?
h/ What is the ABC Banks Asset utilization?
i/ What is the ABC Banks Profit margin?
j/ What is the ABC Banks Overhead efficiency?
2/ A mutual fund has 1000 shares of AT&T, currently trading at $35; 300 shares of Toro, currently trading at $75; and 2500 shares of General Electric, currently trading at $30. The mutual fund has $12,000 liabilities and 5,000 shares outstanding held by investors.
a/ What is the funds market value of assets?
b/ What is the NAV of the fund?
3/ An investor plans to invest $15,000 in a mutual fund with a 3% front load (one-time fee). The fund charges an expense ratio of 1.25% against the average assets for the year. If the funds one-year gross return is 10%, what is the investors one-year return net of loads and expenses?
4/ An investor plans to invest $15,000 in a mutual fund with a 3% front load (one-time fee). The fund charges an expense ratio of 1.25% against the assets at the end of the year. If the funds one-year gross return is 10%, what is the investors one-year return net of loads and expenses?
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