1. dividends are paid out of profits, and:
a. dividend payments must be approved by the firm's board of directors.
b. dividends are guaranteed.
c. dividends are paid before a firm's taxes are paid.
d. dividends are usually paid twice a year. 2. which of the following statements is true about financial planning?
a. any kind of financial expert (such as a stockbroker, lawyer, or accountant) can you develop a comprehensive financial plan.
b. once you have painstakingly developed a financial plan, it is not wise to change it.
c. once you have made a decision to buy an investment, there is no need for continued evaluation.
d. you must always consider the tax consequences of selling your investments.

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.