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suppose that $5M of its $80M is unlikely to be repaid, please write down the unpaid balance Flipping Classroom- Chapter 19: Types of Risks 1.

suppose that $5M of its $80M is unlikely to be repaid, please write down the unpaid balance image text in transcribed
Flipping Classroom- Chapter 19: Types of Risks 1. Credit Risk Consider a Fl with the following balance sheet: Cash: $20M Deposits: $90M Gross Loans: $80M Equity (net worth): $10M Suppose that $5M of its $80M in loans is unlikely to be repaid, please write down the updated balance sheet

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