The following is the balance sheet numbers reported by Bay Bank for 2020. Based on Basel 1 standards, are the banks adequately capitalized?   (in millions)         US Treasury Bonds $25 Deposits   $297.00 Municipal Bonds $15       Mortgages $75 Bonds (Tier 2 Capital) $8.00 Loans $200 Equity (Tier 1 Capital) $10.00 Total $315     $315.00                                                                                       A Yes, they have sufficient Tier 1 and Tier 1+2 capital                                                                                                          b No, they do not have sufficient Tier 1 or Tier 1+2 capital                                                                     c No, they have sufficient Tier 1 but insufficient Tier 1+2 capital                                                                                                                                                      d No, they do have sufficient Tier 1+2 capital but insufficient Tier 1 capital

7

Sovereign debt securities, denominated in U.S. dollars, issued by developing countries and backed by U.S. treasury bonds are called Brady bonds.  Select one: True False

Question 6. You are asked to evaluate a mining project with costs in the developmental stage followed by benefits in the production stage and ending with significant costs at the end of the study period for reclamation of the land to its original state. You have determined that the project has two positive IRRs. a. Summarize a strategy for modifying the CB C cash flow pattern into a simpler CB cash flow pattern with just one IRR solution and a straightforward decision rule. b. Ilustrate your strategy with the following example: Capital cost at t-0 is $70 million; Constant benefits of $40 million in years 1-5; Year 6 reclamation cost of S140 million; Appropriate MARR = 20%. Set up the cash flow diagram, but do not solve for IRR.

The following is the balance sheet numbers (in millions) reported by Bay Bank for 2020. The sovereign and corporate ratings are provided in parentheses. Based on Basel II standards, are the banks adequately capitalized (use Table 9.8 for risk weights).   US Treasury Bonds (AAA) $50       Chinese Sovereign Bonds (A+) $50 Deposits   $383 Mortgages   $100       Corporate Loans (BBB+) $85 Bonds (Tier 2 Capital) 15 Corporate Loans (BB+) $125 Equity (Tier 1 Capital) 12     $410     $410   a Yes, they have sufficient Tier 1 and Tier 1+2 capital                                                                               b No, they do not have sufficient Tier 1 or Tier 1+2 capital                                                                     c No, they have sufficient Tier 1 but insufficient Tier 1+2 capital                                                                          d No, they do have sufficient Tier 1+2 capital but insufficient Tier…

FedEx and DHL have similar delivery time to the most global destinations. However, DHL has lower costs for shipments in Europe. Considering delivery time and cost as attributes of companies’ offerings, FedEx has_______________in global deliveries and _____________ in shipment costs in Europe as compared to DHL  A. Parity; compromise  B. Disadvantage; parity  C. Parity; competitive advantage  D. Disadvantage; dominance