Your initial client project involves providing Financial Projections and Analysis for a New England based regional bank - Client X. You are provided with the Client X's Summary Balance Sheet: Eastern Financial Management Consulting Client X Bank Portfolio - Project Balance Sheet as of 1 Sept 2021 Assets Annual ($ mil) % 250 (0.20) 200 1.50 100 5.00 Liabilities Annual ($ mil) % 100 2.00 150 7.00 CASH $ ST Mkt Sec $ LT Mkt Sec $ ST Borrowing LT Borrowing $ $ Deposits Other Funding $ $ 400 100 1.00 10.00 Loans Other $ $ 400 50 7.50 10.00 Subordinated Regulatory Capital Debt $ 100 2.00 Total Liabilities $ 850 Common Equity $ 150 Total Assets $ 1,000 Total Liabilities & Equity $ 1,000 Please limit each answer to two separate pages in pdf format. 3. Senior EFMC management now asks you to explore the options of repositioning the Clients' Balance Sheet by utilizing the CASH position: *Note all Assets and Liabilities are currently traded at Client X's Book Value, all Assets and Liability interest rates remain unchanged with any realignment, and all projections and analyses are before tax consideration.* (A) How much CASH would opt to redeploy and why? (B) Where would you redeploy this CASH - Enrich Asset Mix? Reduce Liabilities? Buy back Equity? Combination of Assets Liabilities and Equity? Explain you choice(s)? (C) Prepare a Pro-Forma Balance Sheet and Income Statement (before Tax- considerations) after redeploying Client X's CASH. (D) Provide a Key Financial Ratio comparison between Client X operations before redeploying CASH and after redeploying CASH. 4. Why are all the above projections and analyses asked for in a before Tax consideration framework? Your initial client project involves providing Financial Projections and Analysis for a New England based regional bank - Client X. You are provided with the Client X's Summary Balance Sheet: Eastern Financial Management Consulting Client X Bank Portfolio - Project Balance Sheet as of 1 Sept 2021 Assets Annual ($ mil) % 250 (0.20) 200 1.50 100 5.00 Liabilities Annual ($ mil) % 100 2.00 150 7.00 CASH $ ST Mkt Sec $ LT Mkt Sec $ ST Borrowing LT Borrowing $ $ Deposits Other Funding $ $ 400 100 1.00 10.00 Loans Other $ $ 400 50 7.50 10.00 Subordinated Regulatory Capital Debt $ 100 2.00 Total Liabilities $ 850 Common Equity $ 150 Total Assets $ 1,000 Total Liabilities & Equity $ 1,000 Please limit each answer to two separate pages in pdf format. 3. Senior EFMC management now asks you to explore the options of repositioning the Clients' Balance Sheet by utilizing the CASH position: *Note all Assets and Liabilities are currently traded at Client X's Book Value, all Assets and Liability interest rates remain unchanged with any realignment, and all projections and analyses are before tax consideration.* (A) How much CASH would opt to redeploy and why? (B) Where would you redeploy this CASH - Enrich Asset Mix? Reduce Liabilities? Buy back Equity? Combination of Assets Liabilities and Equity? Explain you choice(s)? (C) Prepare a Pro-Forma Balance Sheet and Income Statement (before Tax- considerations) after redeploying Client X's CASH. (D) Provide a Key Financial Ratio comparison between Client X operations before redeploying CASH and after redeploying CASH. 4. Why are all the above projections and analyses asked for in a before Tax consideration framework
