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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:

  1. 4) Total interest income and total interest expense:
    1. $1,600; $800
    2. $800; $1,600
    3. $800; $400
    4. $3,200; $1,600
  2. 5) Total noninterest income and total noninterest expense
    1. $2,000; $1,500
    2. $1,500;$2,000
    3. $1500; $1,000
    4. $2,000; -$500
  3. 6) Provision for loan losses: a. $48 b. $24 c. $60 d. $45
  4. 7) Income taxes:
    1. $75.60
    2. $105.60
    3. $240.00
    4. The bank does not have to pay taxes because it has negative net noninterest income
  5. 8) Dividend paid to common stockholders: a. $0 b. $246.40 c. $46.40 d. $100

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