What is the banks net interest margin

Assignment Help Financial Management
Reference no: EM131182762

Kansas City Bank had interest revenues of $80 million last year and interest expenses of $35. About $400 million of its $1 billion in assets are rate sensitive, and $700 million of its liabilities are rate sensitive. a) What is the Bank’s net interest margin? (Use the formula: Net Interest Margin= (Interest revenue- Interest Expenses)/ Assets b) What is the Gap of the Bank? Use: Gap = rate sensitive assets – Rate sensitive liabilities c) What is the Gap ratio? Use: Gap Ratio = rate sensitive assets / Rate sensitive liabilities

Reference no: EM131182762

Questions Cloud

Appropriate research topic : The first written assignment requires you to select an appropriate research topic for this course and to submit an outline of how you wish to analyze the topic. Select a topic that is interesting to you that is also related to the course topics an..
Social security may not be available when you retire : Social Security may not be available when you retire? We all pay into the system so should there be money available for you to use? Is retirement a right?
Determine two possible corporate governance challenges : Corporate governance has become a hot issue in the U.S. over the past two decades. From your analysis of the case study, determine two possible corporate governance challenges that might be faced by Best Buy as a result of its rapid growth
Write a critique of steve jobs 2005 stanford university : Write a written critique of Steve Job's 2005 Stanford University Commencement Speech.- Create a Word Doc for your answers to each question.
What is the banks net interest margin : Kansas City Bank had interest revenues of $80 million last year and interest expenses of $35. About $400 million of its $1 billion in assets are rate sensitive, and $700 million of its liabilities are rate sensitive. a) What is the Bank’s net interes..
Explain the formal performance feedback process : Describe the performance management system that is currently in place. Explain the formal performance feedback process. Describe any informal performance feedback that takes place.
Federal government involvement in secondary mortgage market : Secondary Mortgage Market is the market created by US gov’t to boost the economy during the great depression. After FIs originate mortgages, they either sell or securitize them in the secondary market. U.S. government was deliberately involved in the..
What is the sexual double standard discussed in andersen : 1. What is the sexual double standard discussed in Andersen (Chapter 4)? Has the double standard changed over time? Where else does the double standard based on gender exist in society? Incorporate examples.
What is the sexual double standard discussed in andersen : 1. What is the sexual double standard discussed in Andersen (Chapter 4)? Has the double standard changed over time? Where else does the double standard based on gender exist in society? Incorporate examples.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the present value of depreciation

George bought a piece of equivalent for $28,000. The equipment has a useful life of 4 years and a salvage value of $2,000 at the end of its useful life. Assume that the annual interest rate is 9%. Calculate the present value of depreciation, using th..

  Interest rates versus the new mortgage payments

You are currently in the 9th year of a 30-year fixed rate, fully amortized mortgage with monthly payments, with the lock-in period of 10 years (prepayment penalty is 2% of the remaining balance). Assume that rate doesn’t change over the life of the l..

  Projections given for price-quantity-variable costs

We are evaluating a project that costs $1018071, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 42390 units per year. Price per unit is $48, vari..

  What has occurred with companys dividend payout

What has occurred with companys dividend payout, dividend yield, and dividend per share over the past three years -  Do you have any explanations for what has occurred? How does your selected company's dividend payout, dividend yield, and dividend p..

  The growth rate for the firms common stock

The growth rate for the firm’s common stock is 7%. The firm’s preferred stock is paying an annual dividend of five dollars. What is the preferred stock price if the required rate of return is 8%.

  Endorsement deal with a prominent sponsor

Mr. Smith signs a five-year endorsement deal with a prominent sponsor. Under this deal Hyun-Woo will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the p..

  What is the estimated value per share of your firms stock

Ume that the average firm in your company’s industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry and just paid a dividend (D0) of $1. What is requi..

  What method is used for calculation of the accounting beta

What method is used for calculation of the accounting beta?

  What percent did the nominal value of the dollar change

All interest rates are given as p.a. You must a just to the period. Take money and interest rates to four decimals before rounding. During 1995, the Mexican peso to Us dollar exchange rate changed from Mex$5.33/U.S.$ to Mex$7.46/U.S.$. At the same ti..

  Present and future values of a cash flow stream

An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? If other investm..

  Calculate the cost of equity using the sml method

Zoot Industries stock has a beta of 1.20. The company just paid a dividend of $.50, and the dividends are expected to grow at 6 percent. The expected return on the market is 11 percent, and Treasury bills are yielding 6.2 percent. The most recent sto..

  What is your bonds rate of return over the year

You buy a(n) 6% coupon, 10-year maturity bond for $955. A year later, the bond price is $1,080. Assume coupons are paid once a year and the face value is $1,000. What is the new yield to maturity on the bond. What is your bond's rate of return over t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd