Rent the Runway is an innovative business model. The two entrepreneurs who run the company have found a way to satisfy unmet consumer needs in a high-demand market, and as a result they are seeing high revenues and profits. Which of the following new developments is most likely to occur in the market that could pose a challenge for them? a. Firms in other industries will imitate their business model.
b. Firms in related industries will want to acquire Rent the Runway for its capabilities.
c. Firms in the high-end women's fashion retail industry will imitate their business model.
d. Firms in other segments of the retail industry will imitate their business model.

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.