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3. Contingent Bank has the following balance sheet in market value terms (in millions of dollars). Assets Liabilities Cash $20 Deposits $220 Mortgages 220 Equity
3. Contingent Bank has the following balance sheet in market value terms (in millions of dollars). Assets Liabilities Cash $20 Deposits $220 Mortgages 220 Equity 20 Total assets $240 Total liabilities and equity $240 In addition, the bank has contingent assets with $100 million market value and contingent liabilities with $80 million market value. What is the true stockholder net worth? What does the term contingent mean?
3. Contingent Bank has the following balance sheet in market value terms (in millions of dollars).
Assets Liabilities
Cash $20 Deposits $220
Mortgages 220 Equity 20
Total assets $240 Total liabilities and equity $240
In addition, the bank has contingent assets with $100 million market value and contingent liabilities with $80 million market value. What is the true stockholder net worth? What does the term contingent mean?
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