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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?

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