How much leverage does the bofa have

Assignment Help Financial Management

Reference no: EM131843968

1. How much leverage does the BOFA have, and how does it compare to its peers?

2. YOUR ANALYSIS OF BOFA: Can you determine what type of business the bank relies upon for its cash flow (what sort of lending or other financial activity does the bank do)? Do the bank’s activities carry any unusual risks? Does the bank’s geographic or business specialization present special challenges or risks? Do you think the bank is sound enough to weather the next recession?

3. Excel Spreadsheet – at least 2 years of data to be obtained from SEC/Edgar and/or FDIC.gov since these are the primary sources for financial data. In other words, don’t necessarily trust Yahoo! Finance or MSN Money. Or, go directly to the source: SEARCH THE BANK’S WEBSITE AND LOOK FOR ANNUAL REPORTS AND DOWNLOAD

Calculate the Financial Institution’s:

a. ROE and ROA

b. Equity Multiplier

c. Profit Margin (net income/total operating income), plus these detailed sub-ratios: interest income/total operating income, provision for loan loss/total operating income, non-interest expense/total operating income, and income taxes/total operating income (for banks)

d. Asset Utilization (total operating income/total assets), plus these sub-ratios: interest income/total assets and non-interest income/total assets (for banks).

Reference no: EM131843968

Questions Cloud

The required return on howard corporation stock : The risk-free rate of interest is 4% and the market risk premium is 9%. The required return on Howard Corporation stock is

What is the implied value of the firm growth opportunities : If earnings are $4.20 a share, what is the implied value of the firm's growth opportunities?

From a fund of funds perspective : Today is T=1. From a fund of funds perspective, you are trying to evaluate Portfolio Managers A-E for style drift over the past year

Consider standard mortgage with monthly payments : Consider a standard mortgage (360 months) with monthly payments and a nominal rate (monthly compounding) of 5.00%.

How much leverage does the bofa have : How much leverage does the BOFA have, and how does it compare to its peers?

What is present value of this cash flow pattern : what is the present value of this cash flow pattern?

Find the modified internal rate of return : Find the modified internal rate of return (MIRR) for the following series of future cash flows if company is able to reinvest cash flows received from project

Find the internal rate of return : Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $504,600.

What price should the stock sell at if the discount rate : What price should the stock sell at if the discount rate is 15%? What price should stock sell at if the discount rate is 12%?

User Account

All Pages