A firm's current assets and current liabilities are P25,000.00 and P18,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.35 times * a. P1,000.00 b. P2,000.00 c. P3,000.00 d. P4,000.00 e. P5,000.0
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Choose the letter of correct answer
A firm's current assets and current liabilities are P25,000.00 and P18,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the
a. P1,000.00
b. P2,000.00
c. P3,000.00
d. P4,000.00
e. P5,000.0
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Solved in 2 steps
- Use the same CMO as in the previous question and suppose that in month 10, the beginning balance on tranche A is $2,733,990.91 and the beginning balance on tranche B is X$3,000,000. How much cash flow do investors in tranche A receive in month 10? 4 Selected Answer: 191,554 BE O ENG 40 11:36 PM 11/15/2023Consider a bank with the following balance sheet (M means million): (Image attached as Q3) If the interest rates go up by 1%, using the duration and convexity rule, determine the net worth of the bank and the equity to asset ratio. ALSO In above scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise? Attempted to create formula for first part - is it correct?Consider a bank with the following balance sheet (M means million): (Image attached as Q3) If the interest rates go up by 1%, using the duration and convexity rule, determine the net worth of the bank and the equity to asset ratio. ALSO In above scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise?
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- Calculate the quick ratio and indicate wheather the ratio is favorable or unfavorable. Current Liabilities $28,000,000.00 Cash: $27,000,000 Investments $36,000,000 Accounts Receibable $12,000,000.00 Due from other funds: $2,500,000.001. What is the working capital? a. 1,600,000 c. 7,300,000 b. 5,700,000 d. 1,800,000 2. What is the current ratio of Martin Company? a. 7.08 c. 2.50 b. 2.33 d. 7.50 3. Is the company liquid and able to pay current maturing obligations? a. Yes c. Depends on the maturity date of debts b. No d. Depends on the level of cashCalculate 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
- Which of the following is a financial instrument? Select one: a. All the options b. Merchant bankers c. Banks d. Mutual Fund e. Leasing Companies Find the profitability index for Oman Clothing Company if the initial investment is 10700 OMR and the cash Inflows are as follows: Year 1 =5350 OMR; Year 2 =6400 OMR; Year 3=7450 OMR and Year 4=8500 OMR. Use discount rate as 5.05%. Select one: a. 2.27 b. 1.15 c. 2.89 d. 1.41 e. None of the optionsQUESTION 3 Below is the balance sheet Composition and Average Interest rates of Liberty Bank: Details Assets Yield Rates Liabilities Interest Costs Rate sensitivity 52,000 7% 30,000 3% Fixed rate 64,000 9% 18,000 4% Non earning/Non paying 280,000 23,800 Equity 328,200 Total 400,000 400,000 Required: a.) Determine the Net interest income of Liberty Bank? b.) Calculate the gap of Liberty Bank and explain the change in net interest income if the yield rate and interest cost increases? c.) What is the Net interest margin of Liberty Bank? d.) What is the difference between RSA and RSL?Show the complete solution and explanation. Thank you. 1. A company with cost of capital of 15% plans to finance an investment with debt that bears 10% interest. The rate it should use to discount the cash flows is