Using the probability of insolvency model discussed

Assignment Help Business Economics

Reference no: EM131174249

As a financial institutions and market analyst for MoreGaine Securities, a highly reputable financial institutions’ securities underwriter, you must prepare an analysis of the financial condition of a broad range of financial insitituions of various sizes, localities and product lines. Using the “probability of insolvency” model discussed in class where E(ROA) is expected value of after-tax earnings on assets, σ2 is the various of ROA, and K/A is the firm’s equity capital plus contingency and loan loss reserves to total assets, discuss, based upon your economic assumptions, what financial ratios you might use to assess the level and expected future course, over the next few years, of each of these indicators of financial soundness. Clearly state your assumptions about general economic growth and cyclical movements, interest rates, ad potential developments in individual industries and regional economies.

Reference no: EM131174249

Questions Cloud

Home theater system from sound technologies : Assume you ordered two Bose speakers for your home theater system from Sound Technologies, Inc. in New York. Sound Technologies shipped the speakers to you via UPS, C.O.D. (collect on delivery). You did not agree to a C.O.D. shipment of the speakers...

Understanding of the pathophysiology and risk factors : demonstrate an understanding of the pathophysiology and risk factors of common alterations in movement and coordination; regulation, and ingestion, digestion, absorption and metabolism

Affects the decision-making opportunities : Identify one environmental factor or risk that affects the decision-making opportunities within your organization. Provide a brief description of the concerns and potential solutions for addressing the concerns or risks. Are there financial requireme..

What were the main factors that caused the fire : What recommendations would you have made to the building design or maintenance that you believe would have prevented the fire from starting or reduced the severity of the outcome?

Using the probability of insolvency model discussed : As a financial institutions and market analyst for MoreGaine Securities, a highly reputable financial institutions’ securities underwriter, you must prepare an analysis of the financial condition of a broad range of financial insitituions of various ..

Determine the wacc given the given assumptions : Determine the WACC given the above assumptions. Indicate how these might be useful to determine the feasibility of the capital project. Recommend which is more appropriate to apply to project evaluation.

Role of globalization or structural changes in world economy : What is the role of "globalization" or structural changes in the world economy? - What sort of place-making efforts can you observe?

How will you communicate the change to the vendor : What is the probability that this opportunity could occur? What is the impact? What are the risks (adverse effect) that are introduced by this change in plans? How will you communicate this change to the vendor?

Monopoly price for electricity : The CEO of the company claims that because all of the profits will be given back to the citizens, it makes economic sense to charge a monopoly price for electricity. Explain the social cost of monopoly power.

User Account

All Pages