An FI Has Assets of $800 Million and Liabilities of $740

question 105

Multiple Choice

An FI has assets of $800 million and liabilities of $740 million. If the FI had contingent assets of $40 million and contingent liabilities of $160 million, calculate the stockholder's true net worth (ignore the option mentioned in previous question) .

• A)-$60 million.
• B)$60 million.
• C)$70 million.
• D)-$160 million.
• E)$190 million.

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Definitions:

Issuance

Issuance refers to the process of making securities available for sale by a corporation or government entity, typically in the context of raising capital.

Interest Payment

A payment made to lenders by borrowers, representing the interest accrued on the loan or debt for a specific period.

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as the original cost minus accumulated depreciation.