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Capital Alpha Corporation CAC The year of 2009 witnessed continued deterioration in the housing and credit markets high unemployment rates and tight credit. Many banks are struggling and many have recently failed including Colonial National and Guaranty Financial Group. Like many banks today Guaranty had more than $3 billion of securities backed by adjustable-rate mortgages. Delinquency rates on their holdings soared as high as 40 percent before federal officials seized the bank in August 2009. Many homeowners today cannot make mortgage payments. The value of houses has dropped below the amount borrowed causing great problems for all. This is the environment that Capital Alpha Bank and its competitors in the financial services industries face as they look to the future. History Capital Alpha is the result of over 200 mergers including most recently Royal Bank. The vast majority of these acquisitions except for Royal Bank involved financial institutions in mortgage lenders in the United States. Case Study Questions This case provides the opportunity to analyze the future of the financial services industry and develop a plan to position Capital Alpha to better compete in this industry over the next several years; • How should Capital Alpha position itself in the future? State and explain your plan. • Should it strengthen its retail presence grow internationally or move into the void created by the disappearance of investment banks? • If possible develop projected financial statements that fully assess and evaluate the impact of the proposed strategy.(In excel format). • How are the acquisitions/growth financed? • Will debt be increased further or ownership of CFC stock be diluted to raise the capital needed? • Kindly answer these questions using charts and graphs as illustrations and supporting evidence. • The case study should be presented in soft copy. (word and excel formats). [...]
Order Description:
Able to solve theory questions Able to develop financial statment in excel
Subject Area: Money and Banking
Document Type: Dissertation
