DEAR Finance Assingment Help With Solution
Answer all questions and show all the work on excel.
1. The DEAR for a bank is $6,500. What is the VAR for an 8-day period? A 16-day period? Why is the VAR for a 16-day period not twice as much as that for a 8-day period?
2. Bank Y has an inventory of 14-year zero-coupon bonds with a face value of $400 million. The bonds currently are yielding 8.5 percent in the over-the-counter market.
a. What is the modified duration of these bonds?
b. What is the price volatility if the potential adverse move in yields is 25 basis points?
c. What is the DEAR?
3. X Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan. All numbers are in thousands of dollars.
Assets Liabilities and Equity
Cash $ 20 Accounts payable $ 30
Accounts receivables 87 Notes payable 90
Inventory 93 Accruals 30
Long-term debt 150
Plant and equipment 500 Equity (ret. earnings = $0) 400
Total assets $700 Total liabilities and equity $700
Also assume sales = $550,000, cost of goods sold = $360,000, taxes = $56,000, interest payments = $40,000, net income = $42,000, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value.
a. What is the Altman discriminant function value for X Inc.?
b. Should you approve X Inc.’s application to your bank for a $500,000 capital expansion
c. If sales for X were $300,000, the market value of equity was only half of book value, and the cost of goods sold, interest, and tax rate were unchanged, what would be the net income for X? Assume the tax credit can be used to offset other tax liabilities incurred by other divisions of the firm. Would your credit decision change?
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id firstname.lastname@example.org with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id email@example.com and firstname.lastname@example.org must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features for Assignment Help
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Best Assignment Help
- Humanities Assignment help
4. A FI has issued a one-year loan commitment of $3 million for an up-front fee of 25 basis points. The back-end fee on the unused portion of the commitment is 10 basis points. The FI requires a compensating balance of 6 percent as demand deposits. The FI’s cost of funds is 7 percent, the interest rate on the loan is 11 percent, and reserve requirements on demand deposits are 8 percent. The customer is expected to draw down 80 percent of the commitment at the beginning of the year.
a. What is the expected return on the loan without taking future values into consideration?
b. What is the expected return using future values? That is, the net fee and interest income are evaluated at the end of the year when the loan is due?
5. C Bank holds a $100 million loan to Country X. The loans are being traded at bid-offer prices of 91-93 per 100 in the London secondary market.
a. If C has an opportunity to sell this loan to an investment bank at a 4 percent discount, what are the savings after taxes compared with the revenue from selling the loan in the secondary market? Assume the tax rate is 40 percent.
b. The investment bank in turn sells the debt at a 6 percent discount to a real estate company. What is the profit after taxes to the investment bank?
6. What are the components of the KMV Portfolio Manager Model ?
7. Contrast debt repudiation with debt rescheduling.
8. Do you believe that capital adequacy requirements in the commercial banking and thrift industries have been strengthened over time ? Why or why or not ?
9. Contrast economies of scale with economies of scope.
10. Discuss the regulatory issues pertaining to technology and operational risks.
Product Code :Fin243
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at email@example.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.