Common Assumptions Setup
Use to set general assumptions that are used globally across the application.
The following are global settings:
- Relationship Measurement
- The selection in this field determines what information appears on the Pricing Opportunity profitability banner.
- Relationship Target ROE
- The return on equity that the institution wants each relationship to achieve.
- Relationship Target ROA
- The return on assets that the institution wants each relationship to achieve.
- Tax Rate
- The institution's corporate tax rate.
- Cost of Capital
- The percentage applied to the capital amount to determine the cost of the institution's funds.
- Edit Loan Target ROE
- When this check box is selected, the institution's loan officers can edit the loan target ROE at the loan product level when pricing individual loans.
These values are used as default settings that flow to fields in the income statements and product input forms and are used in other calculations.