Question: could you answer the question please ? The table reports select financial statement data for Lemon Bank between 2014 and 2019. Lemon Bank, fm Required:

could you answer the question please ?
could you answer the question please ? The table reports select financial
statement data for Lemon Bank between 2014 and 2019. Lemon Bank, fm

The table reports select financial statement data for Lemon Bank between 2014 and 2019. Lemon Bank, fm Required: [i] Calculate return on assets (to two decimal places). [5 marks] [ii] What is the equity multiplier (leverage)? [5 marks] [iii] Compute return on equity using the ROE decomposition. [5 marks] [iv] Calculate the capitalisation ratio to one decimal place. [5 marks] [v] Discuss the relationship between bank profitability, leverage and solvency. [5 marks] Question 1 - Answer all parts of the question. Part A: The table shows select balance sheet and off-balancessheet items for Bangor Bank. Requirce: [i] Assiga the appropriate risk classes and calculate the amount of risk weighted assets for each balance sheet item and for bank total assets. [6 marks] [ii] Calculate credit-equivalent amounts of risk-weighted assets for tbe off-balance-sheet items. [6 marks] [iii] Based on the total risk weighted assets, what are the minimum anounts of capital the bank must hold as (i) Tier I capital, and (ii) Total cepital. [6 marks] [iv] Calculate how much capital the bank would need without adjusting its assets for risk. State the difference between risk weighted and non-risk weighted capital? [7 marks] The table reports select financial statement data for Lemon Bank between 2014 and 2019. Lemon Bank, fm Required: [i] Calculate return on assets (to two decimal places). [5 marks] [ii] What is the equity multiplier (leverage)? [5 marks] [iii] Compute return on equity using the ROE decomposition. [5 marks] [iv] Calculate the capitalisation ratio to one decimal place. [5 marks] [v] Discuss the relationship between bank profitability, leverage and solvency. [5 marks] Question 1 - Answer all parts of the question. Part A: The table shows select balance sheet and off-balancessheet items for Bangor Bank. Requirce: [i] Assiga the appropriate risk classes and calculate the amount of risk weighted assets for each balance sheet item and for bank total assets. [6 marks] [ii] Calculate credit-equivalent amounts of risk-weighted assets for tbe off-balance-sheet items. [6 marks] [iii] Based on the total risk weighted assets, what are the minimum anounts of capital the bank must hold as (i) Tier I capital, and (ii) Total cepital. [6 marks] [iv] Calculate how much capital the bank would need without adjusting its assets for risk. State the difference between risk weighted and non-risk weighted capital? [7 marks]

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