Answer:
The repricing and duration gap can be set likely by :
A. Positive repricing gap and negative duration gap
Explanation:
Here, we can see the mentioned topic is
The forecasting of rising interest rates. So, the bank is facing this issue then they will have to set the values as :
A. Positive repricing gap and negative duration gap
Forecasting of rising interest rates: It is a very tough thing to do. In financial analysis this is one the hardest assumptions that have to be made.
Its prediction in financial analysis is very complicated. This results in the rates to a lower value which results in money of the bank to outflow.
As by forbes for this year it had been predicted that it would not be rising interest rates in 2020.
Even that the growth of economy will be very low and all will be worrying about the inflation.
A high recession will be noticed by us.
This will results in money lending rates to be quite too high.
Answer:
Explanation:
The total amount paid for the services rendered is $6,000 + $5,000= $11,000.
Although $6,000 was paid directly to him and $5,000 to a financial institution the attorney owes.
Different channels can be used to make payment for services and also at different times. For example payment could be requested as part cash and part bank check. Payment can also be made at various future times.
Regardless of the channels that were used all payments were in relation to the services provided by the attorney.
c a type of marchandiser that buys merchadise from a manufacture
Answer:
1. Equity reduces to $372,300
2. 11,517 shares
3. $32.33
Explanation:
1. Effect on Equity
The company will use $15,600 cash to buy the equivalent amount of shares.
Cash Balance will reduce by;
= 52,900 - 15,600
= $37,300
Equity will reduce by the amount of stock repurchased;
= 387,900 - 15,600
= $372,300
2. Shares Outstanding
Current Stock Price = 
= 387,900/12,000
= $32.33
Number of shares repurchased = 15,600/32.33
= 483 shares
New Shares Outstanding = 12,000 shares - 483 shares
= 11,517 shares
3. Price per share after repurchase
= 
= 372,300 / 11,517
= $32.33
4. Dividends declared reduces the equity value.
= 32.33 - 1.30
= $31.03
The share repurchase is the same as the cash dividend because the stock price after the repurchase is the same as the stock price if dividends are declared less the cash dividends.