商业银行管理Bank ManagmentFinancial Services7th第17章课后题答案.docx

商业银行管理Bank ManagmentFinancial Services7th第17章课后题答案.docx

《商业银行管理Bank ManagmentFinancial Services7th第17章课后题答案.docx》由会员分享，可在线阅读，更多相关《商业银行管理Bank ManagmentFinancial Services7th第17章课后题答案.docx（20页珍藏版）》请在冰豆网上搜索。

商业银行管理BankManagmentFinancialServices7th第17章课后题答案

CHAPTER17

LENDINGTOBUSINESSFIRMSANDPRICINGBUSINESSLOANS

GoalofThisChapter:

Thepurposeofthischapteristoexplorehowbankerscanrespondtoabusinesscustomerseekingaloanandtorevealthefactorstheymustconsiderinevaluatingabusinessloanrequest.Inaddition,weexplorethedifferentmethodsusedtodaytopricebusinessloansandtoevaluatethestrengthsandweaknessesofthesepricingmethodsforachievingafinancialinstitution’sgoals.

KeyTopicsinThisChapter

∙TypesofBusinessLoans:

Short-TermandLong-Term

∙AnalyzingBusinessLoanRequests

∙CollateralandContingentLiabilities

∙SourcesandUsesofBusinessFunds

∙PricingBusinessLoans

∙CustomerProfitabilityAnalysis

ChapterOutline

I.Introduction

II.BriefHistoryofBusinessLending

III.TypesofBusinessLoans

IV.Short-TermLoanstoBusinessFirms

A.Self-LiquidatingInventoryLoans

B.Working-CapitalLoans

C.InterimConstructionFinancing

D.Security-DealerFinancing

E.RetailerandEquipmentFinancing

F.Asset-BasedFinancing

G.SyndicatedLoans

V.Long-TermLoanstoBusinessFirms

A.TermBusinessLoans

B.RevolvingCreditFinancing

C.Long-TermProjectLoans

D.LoanstoSupportAcquisitionsofOtherBusinessFirms

VI.AnalyzingBusinessLoanApplications

A.MostCommonSourcesofLoanRepayment

B.AnalysisofaBusinessBorrower'sFinancialStatements

VIIFinancialRatioAnalysisofaCustomer'sFinancialStatements

A.TheBusinessCustomer'sControlOverExpenses

B.OperatingEfficiency:

MeasureofaBusinessFirm'sPerformanceEffectiveness

C.MarketabilityoftheCustomer'sProductorService

D.CoverageRatiosMeasuringtheAdequacyofEarnings

E.LiquidityIndicatorsforBusinessCustomers

F.ProfitabilityIndicators

G.TheFinancialLeverageFactorasaBarometerofaBusinessFirm'sCapitalStructure

VIIIComparingaBusinessCustomer’sperformancetothePerformanceofItsIndustry

A.ContingentLiabilities

B.EnvironmentalLiabilities

IX.PreparingStatementsofCashFlowsfromBusinessFinancialStatements

A.CashFlowStatements

B.ProFormaStatementsofCashFlowandBalanceSheets

C.TheLoanOfficer'sResponsibilitytotheLendingInstitutionandtheCustomer

X.PricingBusinessLoans

A.TheCost-PlusLoanpricingMethod

B.ThePriceLeadershipModel

C.Below-PrimeMarketPricing

D.CustomerProfitabilityAnalysis（CPA）

1.AnExampleofAnnualizedCustomerprofitabilityAnalysis

2.EarningsCreditsforCustomerDeposits

3.TheFutureofCustomerProfitabilityAnalysis

XI.SummaryoftheChapter

ConceptChecks

17-1.Whatspecialproblemsdoesbusinesslendingpresenttothemanagementofabusinesslendinginstitution?

Whilebusinessloansareusuallyconsideredamongthesafesttypesoflending（theirdefaultrate,forexample,isusuallywellbelowdefaultratesonmostothertypesofloans）,theseloansaveragemuchlargerindollarvolumethanotherloansand,therefore,cansubjectaninstitutiontoexcessiveriskoflossand,ifasubstantialnumberofloansfail,canleadtofailure.Moreover,businessloansareusuallymuchmorecomplexfinancialdealsthanmostotherkindsofloans,requiringlargernumbersofpersonnelwithspecialskillsandknowledge.Theseadditionalresourcesrequiredincreasethemagnitudeofpotentiallossesunlessthebusinessloanportfolioismanagedwithgreatcareandskill.

17-2.Whataretheessentialdifferencesamongworkingcapitalloans,opencreditlines,asset-basedloans,termloans,revolvingcreditlines,interimfinancing,projectloans,andacquisitionloans?

a.WorkingCapitalLoans--Loanstofundthecurrentassetsofabusiness,suchasaccountsreceivable,inventories,ortoreplenishcash.

b.OpenCreditLines--Acreditagreementallowingabusinesstoborrowuptoaspecifiedmaximumamountofcreditatanytimeuntilthepointintimewhenthecreditlineexpires.

c.Asset-basedLoans--Creditwhoseamountandtimingisbaseddirectlyuponthevalue,condition,andmaturityofcertainassetsheldbyabusinessfirm（suchasaccountsreceivableorinventory）withthoseassetsusuallybeingpledgedascollateralbehindtheloan.

d.TermLoans--Businessloansthathaveanoriginalmaturityofmorethanoneyearandnormallyareusedtofundthepurchaseofnewplantandequipmentortoprovideforapermanentincreaseinworkingcapital.

e.RevolvingCreditLines--Linesofcreditthatpromisethebusinessborroweraccesstoanyamountofborrowedfundsuptoaspecifiedmaximumamount;moreover,thecustomermayborrow,repay,andborrowagainanynumberoftimesuntilthecreditlinereachesitsmaturitydate.

f.InterimFinancing--Bankfundingtostartconstructionortocompleteconstructionofabusinessprojectintheformofashort-termloan;oncetheprojectiscompleted,long-termfundingwillnormallypayoffandreplacetheinterimfinancing.

g.ProjectLoans--Credittosupportthestartupofanewbusinessproject,suchastheconstructionofanoffshoredrillingplatformortheinstallationofanewwarehouseorassemblyline;oftensuchloansaresecuredbythepropertyorequipmentthatarepartofthenewproject.

h.AcquisitionLoans--Loanstofinancemergersandacquisitionsofbusinesses.Amongthemostnoteworthyoftheseacquisitioncreditsareleveragedbuyoutsoffirmsbysmallgroupsofinvestors.

17-3.Whataspectsofabusinessfirm'sfinancialstatementsdoloanofficersandcreditanalystsexaminecarefully?

Loanofficersandcreditanalystsexaminethefollowingaspectsofabusinessfirm'sfinancialstatements:

a.ControlOverExpenses?

Keyratioshereincludecostofgoodssold/netsales;selling,administrativeandotherexpenses/netsales;wagesandsalaries/netsales;andinterestexpensesonborrowedfunds/netsales.

b.ActivityorEfficiency?

Importantratiosherearenetsales/totalassets,andfixedassets,accountsandnotesreceivable,andcost-of-goodssolddividedbyaverageinventorylevels.

c.MarketabilityofaProduct,Service,orSkill?

Keyratiomeasuresinthisareaarethegrossprofitmargin,ornetsaleslesscostofgoodssoldtonetsales,andthenetprofitmargin,ornetincomeaftertaxestonetsales.

d.Coverage?

Importantmeasureshereincludeinterestcoverage（suchasbefore-taxincomeandinterestpaymentsdividedbytotalinterestpayments）,coverageofinterestandprincipalpayments（suchasearningsbeforeinterestandtaxesdividedbyannualinterestpaymentsplusprincipalpaymentsadjustedforthetaxeffect）,andthecoverageofallfixedpayments（suchasbefore-taxincomeplusinterestpaymentsplusleasepaymentsdividedbyinterestpaymentsplusleasepayments）.

e.ProfitabilityIndicators?

Keybarometersinthisareacanincludesuchratiosasbefore-taxnetincomedividedbytotalassets,networth,orsales,andafter-taxnetincomedividedbytotalassets,networth,ortotalsales.

f.LiquidityIndicators?

Importantratiomeasureshereusuallyincludethecurrentratio（currentassetsdividedbycurrentliabilities）,andtheacid-testliquidityratio（currentassetslessinventoriesdividedbycurrentliabilities）.

g.Leverageindicators?

Ratiosindicatingtrendsinthisdimensionofbusinessperformanceusuallyincludetheleverageratio（totalliabilities/totalassetsornetworth）,thecapitalizationratio（oflong-termdebtdividedbytotallong-termliabilitiesandnetworth）,andthedebt-to-salesratio（oftotalliabilitiesdividedbynetsales）.

Oneproblemwithemployingratiomeasuresofbusinessperformanceisthattheyonlyreflectsymptomsofapossibleproblembutusuallydon'ttellusthenatureoftheproblemoritscauses.Managementmustlookmuchmoredeeplyintothereasonsbehindanyapparenttrendinaratio.Moreover,anytimethevalueofaratiochanges,thatchangecouldbeduetoashiftinthenumeratoroftheratio,inthedenominator,orboth.

17-4.Whataspectofabusinessfirm'soperationsisreflectedinitsratioofcostofgoodssoldtonetsales?

Initsratioofnetsalestototalassets?

InitsGPMratio?

Itsratioofincomebeforeinterestandtotaxestototalinterestpayments?

Itsacid-testratio?

Initsratioofbefore-taxnetincometonetworth?

Itsratiooftotalliabilitiestonetsales?

Whataretheprincipallimitationsoftheseratios?

Theratioofcostofgoodssoldtonetsalesisawidelyusedindicatorofabusinessfirm'sexpensecontrolsandoperatingefficiency.Theratioofnetsalestototalassetsreflectsactivityorefficiency,whilethegrossprofitmargin（GPM）measurereflectsthemarketabilityofabusiness'sproductsorservices.Afirm'sratioofincomebeforeinterestexpenseandtaxesindicateshoweffectivelyabusinessiscoveringitsinterestexpensesthroughthegenerationofbefore-taxincome.Theacid-testratioprovidesaroughmeasureofafirm'sliquidityposition,whiletheratioofbefore-taxincometonetworthrepresentsameasureofprofitability.Finally,theratioofliabilitiestosalesisanindicatorofmanagement'suseoffinancialleverage.Theseratiosareaffectedbychangesinthenumeratororthedenominatororboth;afinancialorcreditanalystwouldwanttoknowthesourceofanychangeinaratio'svalue.Theseratiosonlymeasureproblemsymptoms;youmustdigdeepertofindthecause.

17-5.Whatarecontingentliabilitiesandwhymighttheybeimportantindecidingwhethertoapproveordisapproveabusinessloanrequest?

Contingentliabilitiesincludesuchpendingorpossiblefutureobligationsaslawsuitsagainstabusinessfirm,andwarrantiesorguaranteesthefirmhasgiventoothersregardingthequality,safety,orperformanceofitsproductorservice.Anotherexampleisacreditguarantyinwhicht