Question
Could you please answer 6 to 8 step by step QUESTION 4-8 You were informed that a banks latest income and expense statement contained the
Could you please answer 6 to 8 step by step
QUESTION 4-8
You were informed that a banks latest income and expense statement contained the following figures (in $ millions):
Net interest income | $800 |
Net noninterest income | -500 |
Pretax net operating income | 372 |
Security gains | 100 |
Increases in banks undivided profits | 246.40 |
Suppose you also were told that the banks total interest income is twice as large as its total interest expense and its non-interest income is 34 of its non-interest expense. Imagine that its provision for loan losses equals 3% of its total interest income, while its taxes generally amount to 30% of its net income before income taxes. Answer the following questions:
- 4) Total interest income and total interest expense:
- $1,600; $800
- $800; $1,600
- $800; $400
- $3,200; $1,600
- 5) Total noninterest income and total noninterest expense
- $2,000; $1,500
- $1,500;$2,000
- $1500; $1,000
- $2,000; -$500
- 6) Provision for loan losses: a. $48 b. $24 c. $60 d. $45
- 7) Income taxes:
- $75.60
- $105.60
- $240.00
- The bank does not have to pay taxes because it has negative net noninterest income
- 8) Dividend paid to common stockholders: a. $0 b. $246.40 c. $46.40 d. $100
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