Income statements when evaluating commercial loan

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1. Suppose you buy a stock for $28.66, receive a dividend of $1.6, and sell it for $48.69. What is your dividend yield?

2. Why is it important to compute pro forma common size balance sheets and income statements when evaluating a commercial loan?

3. Your bank has a positive GAP and wants to hedge against changes in interest rates. Would a collar or reverse collar serve as a better hedge? Why?

Reference no: EM131351433

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