Southeast Bank is a commercial bank. The managers of Southeast Bank are about to raise $2 million equity and $3 million debt from the primary market. Commercial banks are the main fund providers to the household sector. In addition, Southeast Bank currently has $25 million total assets and some off-balance-sheet activities worth $75 million.

A. Discuss the options available to Southeast Bank to raise $2 million equity and $3 million debt.

B. Identify three different types of loan finance that are available for individual borrowers.

C. Given the information provided, identify any potential problems that Southeast Bank could face in the event of a credit crunch.

Answer rating: 100% (QA)

A Options to raise 2 million equity and 3 million debt 1 Equity financing options a Issuing new shares Southeast Bank can issue new shares to raise equity capital This can be done through a rights iss... View the full answer