Based on the following information about Banks A and B, compute for each bank its return on
Question:
Based on the following information about Banks A and B, compute for each bank its return on assets (ROA), return on equity (ROE), and leverage ratio.
a. Bank A has net profit after taxes of $1.8 million and the following balance sheet:
b. Bank B has net profit after taxes of $1 million and the following balance sheet:
Transcribed Image Text:
Bank A (in millions) Assets Liabilities Reserves $ 5 Deposits $75 Loans $45 Borrowing $10 Securities $45 Bank capital $10
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted:
Students also viewed these Business questions
-
Based on the information provided below about banks A and B, compute for each bank its return on assets (ROA), return on equity (ROE) and leverage ratio. a. Bank A has net profit after taxes of $1.8...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Based on the information provided below about banks A and B, compute for each bank its return on assets (ROA), return on equity (ROE) and leverage ratio. a. Bank A has net profit after taxes of $1.8...
-
What will the following code display? numbers = [1, 2, 3, 4, 5] numbers [2] = 99 print (numbers)
-
1. Why might it be difficult to measure natural resource depletion or pollution and convert the resulting quantity into a dollar-denominated amount? 2. Why do you suppose that many economists worry...
-
The following table summarizes the rules of debit and credit. For each of the items (a) through (l), indicate whether the proper answer is a debit or acredit. Normal Increase Decrease Balance Balance...
-
Consider the following cash flow profile and assume MARR is 10 percent/year. a. What does Descartes' rule of signs tell us about the IRR(s) of this project? b. What does Norstrom's criterion tell us...
-
(a) Why are office allocations so difficult? What factors must be considered when planning an office layout? (b) Offer Jeannette a method for monitoring the office move. Explain why this method or...
-
1. A car has tires that have an outer diameter of 31 inches. If the wheels are turning with an angular velocity of 12 rad/s, how far in miles will the car travel in 2 hours? Enter your result rounded...
-
Why are checking accounts no longer the primary source of funds for commercial banks in the United States?
-
Consider a bank with the following balance sheet, as shown on the next page. You read online that the banks return on assets (ROA) was 1 percent. What were the banks after-tax profits? Bank Balance...
-
What is the summarization of a data set? Why is it important?
-
Are marketers overestimating the powers of branding? Do you believe brands have the powers ascribed to them in this chapter (e.g., as experience provider or as a lovemark)? Can brands create social...
-
I was hoping you can help me understand risk response / management plan for the following project and risks i have outlined. For example, the project i am working on is to establish a public...
-
4. Find the complexity of the following code in the worst case: (5 marks) For (int i=n; i>0; i/=2){ } For (int j=1; j
-
Many companies have implemented online shopping, but Nordstrom has combined online shopping with inventory management to serve customers better. While Walmart allows customers to buy online and to...
-
How much heat is required to convert 185 g of ice at -8C to water at 8C? cal Additional Materiale
-
Which method is the best? Why?
-
What are conversion costs? What are prime costs?
-
If velocity were predictable but not constant, would a monetary policy that fixed the growth rate of money work?
-
Describe the impact of financial innovations on the demand for money and velocity.
-
Suppose that expected inflation rises by 3 percent at the same time that the yields on money and on non-money assets both rise by 3 percent. What will happen to the demand for money? What if expected...
-
You can afford a $400 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford? $ Submit Question
-
Map the layers of the TCP/IP model to the OSI model Each layer of OSI has a body/group that is responsible for the standards, please name them Describe the progression through the OSI model of the...
-
Compare Ubuntu (Linux) with CentOS (Linux) and Kali (Linux)? What are the key differences between these Linux distros? In what terms is Ubuntu better than CentOS and Kali?
Study smarter with the SolutionInn App