OK State Bank reports total operating revenues of $150 million, with total operating expenses of $125 million,

Question:

OK State Bank reports total operating revenues of $150 million, with total operating expenses of $125 million, and owes taxes of $5 million. It has total assets of $1.00 billion and total liabilities of $850 million. What is the bank’s ROE?
 
Input Area:



OriginalRevenue($millions)
150
OriginalExpense($millions)
125
OriginalTax($millions)
5
OriginalAssets($millions)
1,000
OriginalLiabilities($millions)
900
Alternative 1%Chg in Rev, Exp, Tax10.00%
Alternative 1%Chg in Assets, Liabilities0.00%
Alternative 2%Chg in Rev, Exp, Tax0.00%
Alternative 2%Chg in Assets, Liabilities10.00%
Alternative 3%Chg in Rev, Exp, Tax-10.00%
Alternative 3%Chg in Assets, Liabilities0.00%
Alternative 4%Chg in Rev, Exp, Tax0.00%
Alternative 4%Chg in Assets, Liabilities-10.00%





Intermdiate Calcs Area:

RevenueExpenseTax
Original
150.00125.005.00
Alternative 1
165.00137.505.50
Alternative 2
150.00125.005.00
Alternative 3
135.00112.504.50
Alternative 4
150.00125.005.00





AssetsLiabilities
Original

1,000.00850.00
Alternative 1

1,000.00850.00
Alternative 2

1,100.00935.00
Alternative 3

1,000.00850.00
Alternative 4900.00765.00

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Related Book For  book-img-for-question

Bank Management and Financial Services

ISBN: 978-0078034671

9th edition

Authors: Peter Rose, Sylvia Hudgins

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