Question
ATM Bank has the following liabilities and equity categories: Deposits $9 million Other liabilities $4 million Stockholders equity ? Total liabilities and stockholders equity ?
ATM Bank has the following liabilities and equity categories:
Deposits | $9 million |
Other liabilities | $4 million |
Stockholders equity | ? |
Total liabilities and stockholders equity | ? |
a) What would be the banks total liabilities and stockholders equity if stockholders equity were one-half the size of other liabilities?
b) If total liabilities and stockholders equity capital were $15.5 million, what would be the amount of the stockholders equity?
c) If total liabilities and stockholders equity were $14 million, and $1 million of deposits were withdrawn from the bank, what would be the amount of the stockholders equity?
Explanation of the results of your work must be included. By this I mean what does your answer mean in words.
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