Third National Bank is forecasting a return on equity of 25% for this year. The board of
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Third National Bank is forecasting a return on equity of 25% for this year. The board of directors wants to maintain its current policy of paying the bank's stockholders 40% of any net earnings the bank will earn. How fast can the bank's assets grow this year without jeopardizing its ratio of capital to assets? Explain.
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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