Your initial client project involves providing Financial Projections and Analysis for a New England based regional...

  

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Your initial client project involves providing Financial Projections and Analysis for a New England based regional bank - Client X. You are provided with the Client X's Summary Balance Sheet: Eastern Financial Management Consulting Client X Bank Portfolio - Project Balance Sheet as of 1 Sept 2021 $ CASH ST Mkt Sec $ LT Mkt Sec $ Loans Other Assets ($ mil) 250 200 100 $ 400 $ 50 Total Assets Annual % (0.20) 1.50 5.00 7.50 10.00 $ 1,000 Please limit each answer to two Deposits Other Funding ST Borrowing LT Borrowing $ 150 Subordinated Regulatory Capital Debt LA LA $ 100 $ Liabilities LA LA ($ mil) $ 400 100 $ 100 Annual % 2.00 7.00 850 1.00 10.00 2.00 Total Liabilities $ Common Equity $ 150 Total Liabilities & Equity $1,000 separate pages in pdf format. 3. Senior EFMC management now asks you to explore the options of repositioning the Clients' Balance Sheet by utilizing the CASH position: *Note all Assets and Liabilities are currently traded at Client X's Book Value, all Assets and Liability interest rates remain unchanged with any realignment, and all projections and analyses are before tax consideration.* (A) How much CASH would opt to redeploy and why? (B) Where would you redeploy this CASH - Enrich Asset Mix? Reduce Liabilities? Buy back Equity? Combination of Assets Liabilities and Equity? Explain you choice(s)? (C) Prepare a Pro-Forma Balance Sheet and Income Statement (before Tax- considerations) after redeploying Client X's CASH. (D) Provide a Key Financial Ratio comparison between Client X operations before redeploying CASH and after redeploying CASH. 4. Why are all the above projections and analyses asked for in a before Tax consideration framework? Your initial client project involves providing Financial Projections and Analysis for a New England based regional bank - Client X. You are provided with the Client X's Summary Balance Sheet: Eastern Financial Management Consulting Client X Bank Portfolio - Project Balance Sheet as of 1 Sept 2021 $ CASH ST Mkt Sec $ LT Mkt Sec $ Loans Other Assets ($ mil) 250 200 100 $ 400 $ 50 Total Assets Annual % (0.20) 1.50 5.00 7.50 10.00 $ 1,000 Please limit each answer to two Deposits Other Funding ST Borrowing LT Borrowing $ 150 Subordinated Regulatory Capital Debt LA LA $ 100 $ Liabilities LA LA ($ mil) $ 400 100 $ 100 Annual % 2.00 7.00 850 1.00 10.00 2.00 Total Liabilities $ Common Equity $ 150 Total Liabilities & Equity $1,000 separate pages in pdf format. 3. Senior EFMC management now asks you to explore the options of repositioning the Clients' Balance Sheet by utilizing the CASH position: *Note all Assets and Liabilities are currently traded at Client X's Book Value, all Assets and Liability interest rates remain unchanged with any realignment, and all projections and analyses are before tax consideration.* (A) How much CASH would opt to redeploy and why? (B) Where would you redeploy this CASH - Enrich Asset Mix? Reduce Liabilities? Buy back Equity? Combination of Assets Liabilities and Equity? Explain you choice(s)? (C) Prepare a Pro-Forma Balance Sheet and Income Statement (before Tax- considerations) after redeploying Client X's CASH. (D) Provide a Key Financial Ratio comparison between Client X operations before redeploying CASH and after redeploying CASH. 4. Why are all the above projections and analyses asked for in a before Tax consideration framework?

Answer rating: 100% (QA)

AI would recommend redeploying 100 million of the cash position The reason for this is that the cash position is currently very large and is not being fully utilized This redeployment would allow for ... View the full answer