Q1) is ABC bank a commercial bank, an investment bank, or a universal bank? Why? Q2) what
Question:
Q1) is ABC bank a commercial bank, an investment bank, or a universal bank? Why?
Q2) what is AbC bank's return on equity (ROE) ratio?
Q3) what is ABC Bank's return on assets (ROa) ratio?
Q4) suppose the average ROE and ROA of banking industry are the following: Industry- average ROE=7; Industry- average ROE=5. Consider this additional information, is AbC bank more likely or less likely to take risk relative to the infustru average? Why?
Q5) ABC bank is issuing a 6- year zero coupon bond with a face value of 1000$ at a price of 700$. What is the current yield to maturity rate for similar bonds?
Q6) abc bank issued perpetual preference shares some years ago. The bank pays an annual dividend of 3,2$ and the required rate of return is 11%. If this share is currently sold at 27$, would it be a good buy and why?
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M