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How do mergers affect communities?A: While a locally controlled bank is merged into a bank headquartered somewhere else (an out-of-market merger), a few apprehension about the institution's future commitment to the local community is bound to result. Though, because such mergers usually are motivated by a bank's desire to gain access to a new market, commitment to the community frequently is actually enhanced. Banks, aware that merger transactions focus public awareness on their role in the community, often demonstrate their commitment instantly through greater lending activity. Banking regulators monitor both the statements of commitment that are made by institutions at the time of a merger or acquisition, also banks' performance under the Community Reinvestment Act, which needs banks to serve all parts of the community.
A manager must be able to quantify as to what will result from an adverse change in interest rates to control interest rate risk. Different types of valuation mode
Assignment II Describe capital budgeting techniques with formulas and examples.
a) Gross profit shows the difference between a firm's sales revenues and its direct cost of sales (COGS). Net profit, however, is calculated after deducting overheads (expenses) fr
What is the correlation between the efficient portfolio and the risk-free asset? Possible answers are +1, -1, 0, or cannot be calculated.
Determine the important ways of financing Financing could be by two ways: debt (loans from different sources such as financial institutions, banks,public etc.) and equity (capi
In the NPV analysis, sunk cost is not relevant whereas opportunity cost is for project evaluation. Requirements: Explain and justify the above statement about sunk cost and
How do I calculate the average return for T over a five year period?
Complete the financial reporting for each period and develop recommendations using the templates provided. Procedure 1. Read the case study. 2. Complete the financial reports
Assume that the current spot exchange rate is FF6.25/$ and the 3 month forward exchange rate is FF6.28/$. The 3 month interest rate is 5.6% per year in the U.S. and 8.8% per year i
Relationship between Bond Price and Time (If Interest Rates are Constant) The bond price changes as the bond moves closer to its maturity. If the bond is quoted
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