A bank made $ 100 million of net income and follows a 50% dividends payout of its net income. If the bank depends completely on internal capital and had assets of 10 billion and a target capital of 10% beginning of the year. 

The bank can increase its assets by $500 million next year?

Answer rating: 100% (QA)

To determine whether the bank can increase its assets by 500 million next year we need to consider t... View the full answer