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You were informed that a bank's latest income and expense statement contained the following figures in 5 millions): Net Interest Income $800 -500 372 Net

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You were informed that a bank's latest income and expense statement contained the following figures in 5 millions): Net Interest Income $800 -500 372 Net noninterest Income Pretax net operating Income Security galns Increases in bank's undivided profits 100 246.40 Suppose you also were told that the bank's total interest income is twice as large as its total interest expense and its non-interest income is % 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. What is the total interest income and total interest expense: O $1600; $800 O $800, $1600 O $800: $400 O $3200: $1600 Question Suppose that stockbrokers have projected that Jamestown Savings will pay a dividend of $2.50 per share on its common stock at the end of the year; a dividend of $3.25 per share is expected for the next year, and $4.00 per share in the following two years. The risk-adjusted cost of capital for banks in Jamestown's risk class is 16%. If an investor holding Jamestown's stock plans to hold that stock for only 4 years and hopes to sell it at a price of $50 per share, what would be the value of the bank's stock be in today's market? O $36.96 $39.47 O $54.96 O $50.00

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