Downtown bancshares has 30 comma 000 shares of $ 1 par value common stock outstanding. suppose downtown declares and distributes a 1 % stock dividend when the market value of its stock is $ 24 per share. 1. journalize downtown's declaration and distribution of the stock dividend on may 11. an explanation is not required. 2. what was the overall effect of the stock dividend on downtown's total assets? on total liabilities? on total stockholders' equity?

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.