- for the purpose of analysing a bank's performance, what is the meaning of "net loans&leases/core deposits ratio" and "net noncore funding dependence?".

- what is the reasonable ratio number (for a commercial bank) for each ratio previously mentioned?

Orchard Biotech Company is considering two mutually exclusive projects (see operational CF estimates below). OBC’s cost of capital is 10%. Calculate NPV and IRR for both projects. A) Which project would you recommend to choose? Why? B) How your NPV and IRR may change if we incorporate leverage into these CF estimates? Explain briefly.

1. (a) If management requires projects to have a 3-year payback, would it accept either of the following two independent projects? Explain.

Year 0 1 2 3 4

Cash flows (A) -$55,000 19,000 19,000 19,000 19,000

Cash flows (B) -$95,000 18,000 18,000 18,000 230,013

(b) What is the NPV of project B assuming the discount rate is 14%.

(c) Sketch the NPV profile for project B. Also indicate the point when the discount rate is 37.01%.

2. A company is evaluating the following two mutually exclusive projects. The company mandates a three-year project payback. The required return is 10%.

Year Project F

0. 0 -$150,000

1. 1 44,000

2. 2 68,000

3. 3 40,000

4. 4 60,000

5. 5 54,000

Project G -$235,000 77,000 77,000 77,000 77,000 77,000

(a) Calculate the payback period for both projects.
(b) Calculate the NPV for both projects.
(c) Calculate the PI for both projects.
(d) Which project, if any, should the company accept? (e) What can we infer about the IRRs for these projects?

3. Evaluate each of the following statements to determine if they are ‘True’ or ‘False’. (a) A one-year project costing $1,000 and with an IRR of 15% should be accepted.

(b) The PV of the cash flows of an eight-year project equals $580. If the discount rate is 8%, and the project costs $500 then it should be rejected.

(c) The payback period is most appropriate for projects with a long life.

What is the current usefulness as an analytic tool. Porter 5 forces and PESTLE Analysis

This concept/definition question. No other information is possible. IF you are still needing "more info" please put this question back in Que for another expert to help.  

The summarized Statement of Financial Position of Dedak Berhad at 30 June 2017 was as follows.

The current price of the ordinary shares is RM1.35 ex dividend. The dividend of RM0.10 is payable during the next few days. The expected rate of growth of the dividend is 9% per annum. The current price of the preference shares is RM0.77 and the dividend has recently been paid. The debenture interest has also been paid recently and the debentures are currently trading at RM80 per RM100 nominal. Corporate tax is at the rate of 30%.

Required

1. Calculate the company’s weighted average cost of capital (WACC), using the respective market values as weighting factors.
2. Assume that Dedak Berhad issued the debentures one year ago to refinance a new investment.

Discuss the reasons why Dedak Berhad may have issued debentures rather than preference shares to raise the required finance.

3. Explain what services a merchant bank may have provided to Dedak Berhad in connection with the raising of this finance.

1. As an option approaches the expiration date, what should happen to the price of the option?

2. Suppose we have two stocks and the price of stock A is much more volatile than the price of stock B. Which stock should have a higher premium?

You are offered a note that pays $1,000 in 15 months (or 456 days) for $850. You have $850 in a bank that pays a 6.76649% nominal rate, with 365 daily compounding, which is a daily rate of 0.018538% and an EAR of 7.0%. You plan to leave the money in the bank if you don’t buy the note. The note is riskless. Should you buy it?

A stock is currently priced at $37.00. The risk free rate is 5% per annum with continuous compounding. In 7 months, its price will be either $42.18 or $31.82. Using the binomial tree model, compute the price of a 7 month bear spread made of European puts with strike prices $41.00 and $45.00.

Which of the following statements is CORRECT?

Describe Information Asymmetry, Adverse Selectin, and Moral Hazard as they relate to Financial Institutions.

Summarize the history of banking in the United States.

The following information is taken from the records of XYZ Company Calculate the gross profit margin and net profit margin using the above data, and comment on the trend you observe. COGS are $189 million in 2013 and 93 million in 2012 and 66 million in 2011 and 65 million in 2010 and 50 million in 2009 gross profit is 63 million in 2013 and 48 million in 2012 and 54 million in 2011 and 60 million in 2010 and 50 million in 2009. and net profit is :12 million in 2013 and 5 million in 2012 and 15 million in 2011 and 20 million in 2010 and 15 million in 2009