Financial Fitness Bank reported a debt-to-equity ratio of 1.75X at the end of 2015. If the firm’s total assets at year-end were $ 25 million, how much of its assets are financed with debt? How much with equity?
Answer to relevant QuestionsA bank is considering two securities: a 30-year Treasury bond yielding 7 percent and a 30-year municipal bond yielding 5 percent. If the bank’s tax rate is 30 percent, which bond offers the higher tax equivalent yield?Anytown Bank has the following ratios: a. Profit margin: 21% b. Asset utilization: 11% c. Equity multiplier: 12X Calculate Anytown’s ROE and ROA.What are the provisions on interstate banking in the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994?What are the definitional differences between Common Equity Tier I, Tier I, and Tier II capital?If the reserve computation period extends from May 18 through May 31, what is the corresponding reserve maintenance period? What accounts for the difference?
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