Calculate the marginal cost of new funding to estimate the required return on the investable proportion given the following data for a U.S. bank.

Market Interest Rate (2.4%), Services Cost (4.3%), Acquisition Cost (1.3%), Deposit Insurance Cost (0.3%), Investable Proportion (90%).

Answer rating: 100% (QA)

To calculate the marginal cost of new funding we need to determine the additional cost incurred by t... View the full answer