Business, 16.12.2021 23:40, trapvannah

A DI has assets of $18 million consisting of $8 million in cash and $10 million in loans. It has core deposits of $8 million. It also has $5 million in subordinated debt and $5 million in equity. Increases in interest rates are expected to result in a net drain of $2 million in core deposits over the year. a-1. The average cost of deposits is 5 percent and the average yield on loans is 8 percent. The DI decides to reduce its loan portfolio to offset this expected decline in deposits. What is the cost to the firm from this strategy after the drain

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:30, AdoNice

Find the interest rate for a $4000 deposit accumulating to $5234.58, compounded quarterly for 9 years

Answers: 1

continue

Business, 22.06.2019 06:00, StephanieQueen2003

For 2018, rahal's auto parts estimates bad debt expense at 1% of credit sales. the company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at december 31, 2017. during 2018, rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off. rahal's accounts receivable at december 31, 2018, are:

Answers: 2

continue

Business, 22.06.2019 11:30, laylay120

You've arrived at the pecan shellers conference—your first networking opportunity. naturally, you're feeling nervous, but to avoid seeming insecure or uncertain, you've decided to a. speak a little louder than you would normally. b. talk on your cell phone as you walk around. c. hold an empowered image of yourself in your mind. d. square your shoulders before entering the room.

Answers: 2

continue

Business, 22.06.2019 14:30, rakanmadi87

If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided

Answers: 1

continue

Do you know the correct answer?

A DI has assets of $18 million consisting of $8 million in cash and $10 million in loans. It has cor...