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KLMN has the following T account:
Assets | Liabilities | ||
Reserves | 30,000 | Deposits | 120,000 |
Loans | 105,000 | Dept | 22,500 |
securities | 15,000 | Capital | 7,500 |
Based on the T account, calculate KLMN's leverage ratio. Interpret your result.
|
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- The best approach to measuring liquidity takes into account changes over time in both liquidity needs and sources. A financial ratio that does this consists of in period t over in period t. liquid assets and liabilities; estimated liquidity needs liquid assets; estimated liabilities estimated reserve needs; liquid assets and liabilities liabilities; estimated liquid assets Given the following information: interest sensitive assets = $300 30-day commercial paper interest sensitive liabilities = $400 90-day CDs 30-day commercial paper is 50 percent as volatile as 90-day T-bills 90-day CDs are 120 percent as volatile as 90-day T-bills Calculate the standardized gap for the bank. A. $160 B. $563 C. -$100 D. -$330 All else the same, a positive duration gap causes the liquidity of the bank to: A. Increase B. decrease C. change only when the level of interest rates is high D. change only when the level of interest rates is low If the…Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3% Return on equity: -5% What is the debt ratio?Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Invested Amount i- n Future Value 1. $ 11,500 7% 15 23 $ 15,000 6% 14 $ 28,000 12% 14 4. S 48,000 8% 6
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