5. Suppose that a savings institution has an average asset duration of 2.5 years and an average liability duration of 3.0 years. If the savings institution holds total assets of $560 million and total liabilities of $467 million, does it have a significant leverage-adjusted duration gap? If interest rates rise, what will happen to the value of its net worth?

Assume that a national restaurant firm called bbq builds 10 new restaurants at a cost of $1 million per restaurant. it outfits each restaurant with an additional $200,000 of equipment and furnishings. to partially defray the cost of this expansion, bbq issues and sells 200,000 shares of stock at $30 per share. what is the amount of economic investment that ahs resulted from bbq's actions? how much purely financial investment took place?

When an interest-bearing note comes due and is uncollectible, the journal entry includes debiting

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.