ZuoTi.Pro
Question

Friendly Financial has $210 million in consumer loans with an average interest rate of 17 percent....

Friendly Financial has $210 million in consumer loans with an average interest rate of 17 percent. The bank also has $132 million in home equity loans with an average interest rate of 12 percent. Finally, the company owns $32 million in corporate securities with an average rate of 9 percent.

Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $304 million and the interest rate will fall to 15 percent. They also estimate that its home equity loans will fall to $120 million with an average interest rate of 13 percent, and its corporate securities portfolio will increase to $37 million with an average rate of 10 percent.

Required:

Estimate Friendly Financial’s revenues for the coming year. (Enter your answer in thousands of dollars.)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Solution portfoleo amount Interest rate Income (thousands) Consumer loans 304 millions 15% 45060 home equity Long 120 million

0 0
Add a comment
Know the answer?
Add Answer to:
Friendly Financial has $210 million in consumer loans with an average interest rate of 17 percent....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Friendly Financial has $140 million in consumer loans with an average interest rate of 12 percent....

    Friendly Financial has $140 million in consumer loans with an average interest rate of 12 percent. The bank also has $94 million in home equity loans with an average interest rate of 9 percent. Finally, the company owns $25 million in corporate securities with an average rate of 7 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $237 million and the interest rate will fall to 10 percent. They also estimate that...

  • Friendly Financial has $250 million in consumer loans with an average interest rate of 21 percent....

    Friendly Financial has $250 million in consumer loans with an average interest rate of 21 percent. The bank also has $164 million in home equity loans with an average interest rate of 16 percent. Finally, the company owns $44 million in corporate securities with an average rate of 13 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $440 million and the interest rate will fall to 19 percent. They also estimate that...

  • 1 Friendly Financial has $140 million in consumer loans with an average interest rate of 12...

    1 Friendly Financial has $140 million in consumer loans with an average interest rate of 12 percent. The bank also has $94 million in home equity loans with an average interest rate of 9 percent. Finally, the company owns $25 million in corporate securities with an average rate of 7 percent. 2.5 points Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $237 million and the interest rate will fall to 10 percent. They...

  • Stubs-R-Us is a local event ticket broker. Last year, the company sold 1,000,000 tickets with an...

    Stubs-R-Us is a local event ticket broker. Last year, the company sold 1,000,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. In addition, employees at a local insurance company headquarters accounted for 5 percent of Stubs’ volume. The headquarters relocated to another state and all the employees closed their accounts. Offsetting these factors is the observation that the average commission per sale is likely to increase...

  • Adair Credit, Inc. has $53.0 million in consumer loans with an average interest rate of 11.0%....

    Adair Credit, Inc. has $53.0 million in consumer loans with an average interest rate of 11.0%. The company has $48.0 million in home equity loans with an average interest rate of 7.0%, and owns $6.0 million in corporate securities with an average interest rate of 5%. Next year, consumer loans are estimated to increase to $58.0 million because of a rate decrease to 9.0%, while home equity loans are estimated to increase to $50.0 million at an average interest rate...

  • Valley Bank has an average interest rate of 10% on %500 million of loans and securities,...

    Valley Bank has an average interest rate of 10% on %500 million of loans and securities, an average interest rate of 5% on $400 million of deposits and other borrowed funds, noninterest revenue of $12 million, noninterest expense of $17 million, and a provision for loan losses of $10 million. total shareholders equity is $50 million, total assets are $500 million and the tax rate is 30%. Prepare Valley's income statement in order to answer: A. the net interest income...

  • Pittsburg Savings & Loan makes four kinds of loans. These loans, with the yearly interest rate...

    Pittsburg Savings & Loan makes four kinds of loans. These loans, with the yearly interest rate charged to customers, are shown in the table below. Type of Loan Interest Charged (in %, percent ) Commercial Loans 7 Home Mortgages 4 Home Improvements 6 Short-term revolving loans 8 The bank has $20 million in available funds. Its objective is to maximize yield on investment. The demand for short-term revolving loans never exceeds $ 3 million. Also there are policies and regulations...

  • A DI has assets of $12 million consisting of $5 million in cash and $7 million in loans. It has core deposits of $6 mill...

    A DI has assets of $12 million consisting of $5 million in cash and $7 million in loans. It has core deposits of $6 million. It also has $3 million in subordinated debt and $3 million in equity. Increases in interest rates are expected to result in a net drain of $1 million in core deposits over the year. a-1. The average cost of deposits is 3 percent and the average yield on loans is 6 percent. The DI decides...

  • A bank offers your firm a revolving credit arrangement for up to $66 million at an interest rate of 1.65 percent per...

    A bank offers your firm a revolving credit arrangement for up to $66 million at an interest rate of 1.65 percent per quarter. The bank also requires you to maintain a compensating balance of 2 percent against the unused portion of the credit line, to be deposited in a non-interest-bearing account. Assume you have a short-term investment account at the bank that pays 1.00 percent per quarter, and assume that the bank uses compound interest on its revolving credit loans....

  • Onshore Bank has $39 million in assets, with risk-adjusted assets of $29 million. Core Equity Tier...

    Onshore Bank has $39 million in assets, with risk-adjusted assets of $29 million. Core Equity Tier 1 (CETI) capital is $1,350,000, additional Tier I capital is $550,000, and Tier II capital is $438,000. The current value of the CET1 ratio is 4.66 percent, the Tier I ratio is 6.55 percent, and the total capital ratio is 8.06 percent. Calculate the new value of CETI, Tier I, and total capital ratios for the following transactions. c. a. The bank repurchases $119,000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT