Suppose a stockholder-owned thrift institution is projected to achieve a 0.90 percent ROA during the coming year. What must its ratio of total assets to equity capital be if it is to achieve its target ROE of 12 percent? If ROA unexpectedly falls to 0.80 percent, what assets-to-capital ratio must it then have to reach a 12 percent ROE?
Answer to relevant QuestionsConway County National Bank presents us with these figures for the year just concluded. Please determine the net profit margin, equity multiplier, asset utilization ratio, and ROE.Net income........... $ 30.00Total ...An analysis of the BHCPR reports on BB&T is presented in this chapter’s appendix. We examined a wide variety of profitability measures for that bank, including ROA, ROE, net profit margin, net interest and operating ...Can you explain the concept of gap management?Suppose that a savings institution has an average asset duration of 2.5 years and an average liability duration of 3.0 years. If the savings institution holds total assets of $560 million and total liabilities of $467 ...U.S. Treasury bills are available for purchase this week at the following prices (based upon $100 par value) and with the indicated maturities:a. $97.25, 182 days.b. $95.75, 270 days.c. $98.75, 91 days.Calculate the bank ...
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