Wayne worked in an office. he had no criminal record, had never had a complaint made against him about his work or his conduct, and had been a faithful employee for nearly 20 years. one day, wayne followed his supervisor to his home and fatally shot him. the estate of the supervisor sued the company, claiming it should have been aware of wayne's growing frustration with work. the company's best defense will be thata. there was no way to foresee that the incident would happen. b. the incident occurred away from the office. c. the killing was the result of a personal conflict between wayne and the supervisor. d. even if the company had been aware of wayne's difficulty with his supervisor, wayne did not have any criminal history.

Arecession is defined as a period in which

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.