. A bank has the following: high-quality liquid assets (HQLA) worth $62 million . Non liquid assets of $15 mln . • • • Stable deposits of $20 min Wholesale Short term deposits of $10 mln $ 50 mln in anticipated net cash flows over a 60 day stress period $39 million in anticipated net cash flows, over a 30-day stress period: Calculate the Liquidity Coverage Ratio O 210% O 124% O 164% O 159%
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- What is the PRESENT VALUE of a ₱20,000 single payment with annual rate of 12% to be compounded annually that will be received after 5 years? A. ₱11,348.54 B. ₱22,400.00 C. ₱32,000.00 D. ₱35,246.83 Which of the following is an operating cash inflow activities? A. Receipt of loan from bank B. Proceed from sale of fixed assets C. Collection of accounts receivables D. Issued shares of stocks Which part of financial planning is meeting with the heads of other department and get information from them pertaining to the tactics that might be able to develop? A. develop a plan B. gather the relevant data C. establish the objective D. implement the plan Statement 1: Long-term financial planning focuses on big picture, such as capital structure and capital budgeting. Statement 2: Short-term financial planning focuses on ensuring that business has enough cash to pay all its liabilities.…mekmek Corporation uses the Baumol Cash Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total to P432,000. The interest rate on marketable securities is P8 per transaction. Using 5% carrying cost rate, what is the optimal cash balance of the company? A. 1,175.76 B. 5,878.78 C. 11,757.55 D. 142,000Calculate the amount of liquidity a bank can generate from selling its AFS portfolio using the following information:USTs held in AFS = $92,053,000Securities held in HTM = $13,500,000Loans = $69,680,000Settlement occurs on T+2Maturing on T+1 = $16,000,000Haircut = 5%USTs in AFS used as collateral for RP liabilities (i.e./ "encumbered") = $19,740,000 $56,313,000 $53,497,350 $52,697,350 $51,710,350
- 1. Makmak Corporation uses the Baumol Cash Management Model to determine its optimal cash balance. For the coming year, the expected cash disbursement total P432,000. The interest rate on marketable securities is 5% and P8 is the cost per transaction. What is the optimal Cash Balance of the company? 2. If Hot Tubs Inc. had annual credit sales of P2,027,773 and its days sales outstanding was equal to 35 days, what was its average A/R outstanding? (Use a 365-day year.)The following formula is used in determining its optimal level of cash. Assume that the fixed cost of selling marketable securities is P10 per transaction and the interest rate on marketable securities is 6% per year. The company estimates that it will make cash payments of P12,000 over a 1-month period. What is the average cash balance (rounded to the nearest peso)? (check the attached photo) choose the letter of the correct answer a. P1,732.00b. P3,464.00c. P6,928.00d. P8,660.00e. P15,588.00(a) Assume JPM has a Liquidity Coverage Ratio of 112%. Assume JPM's High Quality Liquid Assets total $750 billion, what is JPM's 30-day net cash outflow? What is JPM's 30-day net cash outflow? (b) At year - end, 2022, JPM total assets $3, 665,743, 000, 000 ($3.665 trillion). What fraction of total assets are risk - weighted?
- Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Assets Liabilities and Equity Cash (0%) K20 Deposits K175 OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3 Mortgage loans (50%) K70 Cumulative preferred stock K5 Consumer loans (100%) K70 Equity K2 Total Assets K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow: Performance-related standby LCs 50%…Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses: Assets Liabilities and Equity Cash (0%) K20 Deposits K175 OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3 Mortgage loans (50%) K70 Cumulative preferred stock K5 Consumer loans (100%) K70 Equity K2 Total Assets K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps.…Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses. Assets Liabilities and Equity Cash (0%) K20 Deposits K175 OECD Interbank deposits (20%) K25 Subordinated debt (2.5 years) K3 Mortgage loans (50%) K70 Cumulative preferred stock K5 Consumer loans (100%) K70 Equity K2 Total Assets K185 Total Liabilities & Equity K185 In addition, the bank has K30 million in performance-related standby letters of credit (SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow: Performance-related standby LCs 50%…
- Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected that cash will be paid uniformly. The annual interest rate is 24 percent. The transaction cost of each borrowing or withdrawal is P30. (a) What is the optimal cash balance? (b) What is the average cash balance? CHOOSE THE CORRECT ANSWER FOR A AND B(A) P1,432.05 and (B) P566.03(A) P2,121.32 and (B) P8060.66(A) P1,121.32 and (B) P1060.66(A) P2,121.32 and (B) P1060.66(A) P1,732.05 and (B) P866.03V company's evaluation of its cash outlay required indicates that it needs P50,000 for the year. The marketable securities earn an annual rate of 2%. The company incurs P5 to convert marketable securities to cash. V company maintains buffer cash of 5,000 all throughout the year. 1. How much is the annual holding cost as a result of keeping cash in bank? 2. How much is the total annual cost of cash?A bank has an average asset duration of 5 years and an average liability duration of 3 years.This bank has total assets of $500 million and total liabilities of $250 million. Currently,market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what isthis bank's change in net worth?6A. Net worth will decrease by $31.81 million.B. Net worth will increase by $31.81 million.C. Net worth will increase by $27.27 million.D. Net worth will decrease by $27.27 million.
