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.

Question

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.

Quizplus · Accepted Answer

The stockholder's true net worth is calculated as: (Assets + Contingent Assets) - (Liabilities + Contingent Liabilities) = ($800 million + $40 million) - ($740 million + $160 million) = $840 million - $900 million = -$60 million.

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