Question
Given the following information for the SPACE Matrix, calculate the following: Compute all necessary figures for FP, IP, SP, & CP. Please show ALL OF
Given the following information for the SPACE Matrix, calculate the following:
- Compute all necessary figures for FP, IP, SP, & CP. Please show ALL OF YOUR WORK for the each part of the calculations for each position
- Compute the X and Y coordinates. Show the equation and all of your work.
- State which quadrant it falls in and what are all of the corresponding strategies listed in that quadrant.
(There is no need explain beyond what I asked for in the instructions and there is no need to construct an actual graph)
| Financial Position | Ratings |
| The bank's primary capital ratio is 5.50 percent, which is .50 percentage points below the generally required, ratio of 6 percent. | 3.0 |
| The bank's return on assets is positive .26, compared to a bank industry average ratio of positive 0.70. | 1.0 |
| The bank's net income was $112 million, down 38 percent from a year earlier. | 1.0 |
| The bank's revenues decreased 20 percent to $800 million | 1.0 |
| Industry Position | |
| Deregulation provides geographic and product freedom | 5.0 |
| Deregulation increases competition significantly in the banking industry. | 1.0 |
| Pennsylvania's interstate banking law does not allow the bank to acquire other banks in New Jersey, Ohio, Kentucky, Maryland, North Carolina, the District of Columbia, and West Virginia. | 1.0 |
| Stability Position | |
| Lessdeveloped countries are experiencing high inflation and political instability affecting our industry. | -6.0 |
| Headquartered in Pittsburgh, the bank historically has been heavily dependent on the steel, oil, and gas industries. These industries are suffering. | -6.0 |
| Banking deregulation has created major instability throughout the industry. | -5.0 |
| Competitive Position | |
| The bank provides data processing services for more than 950 institutions in 45 states. | -1.0 |
| Superregional banks, international banks, and nonbanks are becoming increasingly competitive. | -5.0 |
| The bank has a considerably smaall customer base compared to their rivals. | -6.0 |
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
