3. Common stock valuation (perpetuity with growth model). Use the constant growth model to compute the expected return for the following common stock: annual dividend $2, growth rate in dividends 10%, price $22.

Higher NIM is better, but if ENBD takes more risk in overdrafts, personal loans and credit cards, obviously they will have a better NIM, It's a trade off find or calculate

Credit ratings for banks are given, you can use this to comment on management's success in controlling risk

Just complete the results here and procide commentary. Lower NPA is better. Higher LLCR is better. But remeber ENBD takes more risk and their business would

Capitalization Status, Common Equity Tier 1 Capital Ratio:12.40%13.30515.10%15.00%Tier 1 Capital Ratio:14.30%15.40617.209%17.40%Total Capital Ratio:15.40%16.50%18.30%18.50%Equity to Assets Ratio:Leverage Ratio:8.90%8.50%10.30%NAAlready calculated here all three CAR ratios(in practice dont do it yourself.refer to pillar 3 report by both banks,its on their website).Higher the better,ENBD takes more risk forthem these ratios are even better if higher

8.Compare Cost StructureStaf costs3.004.0062.783.567Staff cost4.505.7214.010.880Other general and administration expenses1.836.0111.438.707Oecupancy cost275.830321.071Depreciation735.705567.361Equipment and supplies107.258220.854Amortisation of intangibles198.850201223Information technology cost381.392312.838Sponsorships and donations60.30380.317Communication cost207.563265.037Service.legal and professional fees282.528224881Marketing related expenses102317185251Depreciation780.682840.285Amortisation of intangibles183.290183290Others034.034720.3145.836.4745,060,2657991.5217,856,3071.divide each expense category by total and find out who spends more on each category2.Optional to do:find out average cost per staff(total staff cost divided by number of total employees)

Financial analysis report about a Saudi healthcare company, uploaded the 4 years financial statements of the company from "Tadawul" website in the excel. The source of the ratios is in the uploaded book. We should use them and use the benchmark that has been used in the book for each ratio, in the word document I've listed the ratios and please only use the ratios that we can find their data from the excel.

IV. Discounting and Annuities, redux Congratulations! You have won the lottery! You are offered a choice of $1,000,000 up front or an annuity of $100,000 per year for 20 years. Your personal discount rate is 0.04. If you are an economically rational actor, what will you do? Use the FV function in Excel to figure out the appropriate decision, and report the future value of both the immediate payment and the annuity. Show the work that you used to calculate the answer and interpret.

Use the following short rate tree. Short rate can increase or decrease in 6 months by equal probability. Use semi-annual compounding. Now, consider a 1 year mortgage (semi-annually paid) with a mortgage rate of 10% (so that a semi-annual mortgage rate is 5%) and an initial principal balance of $20,000. The mortgage is divided into three sequential pay tranches. Tranche A receives the first $8,000 of the principal, tranche B receives the next $6,000 of the principal, and tranche C receives the remaining $6,000 of the principal. 1. Fill in the amortization schedule of the whole mortgage below. 2. Fill the scheduled payments to the A, B, and C tranches, assuming no prepayment. 3. Suppose that exactly 30% of mortgages will prepay in full after 6 months (0.5 year), regardless of the level of interest rates. Fill the amortization schedule based on the deterministic prepayment. 4. Compute the present value of the whole mortgage, tranche A, tranche B, and tranche C, respectively. 5. Briefly explain the difference between value-minimizing prepayment policy and deterministic prepayment policy and how you would value the mortgage under value-minimizing prepayment policy.

1. Bond valuation: yield-to-maturity (internal rate of return). Calculate the yield-to-maturity for a bond with the following characteristics: face $1,000; coupon rate 8%; years until maturity 12; market price $1,125.