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Use the following information for the next questions Cash Securities Loans Total First National Bank of North America (FNBNA) Assets Amount (million $) $

 

Use the following information for the next questions Cash Securities Loans Total First National Bank of North America (FNBNA) Assets Amount (million $) $ 10 30 60 $ 100 Liabilities and Equity Amount Rate of Return 0.00% Core deposits 5.50% Borrowings 9.00% Equity Total (million $) $ 80 10 10 $ 100 Cost Rate 4.00% 7.00% If FNBNA is expecting a $10 million net deposit drain and it decides to sell securities to offset this expected decline in deposits. What is the cost to the firm from this strategy after the drain?

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