Megalopolis Bank has the following balance sheet and income statement Balance Sheet (in millions) Assets Cash...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Megalopolis Bank has the following balance sheet and income statement Balance Sheet (in millions) Assets Cash and due from banks Investnent securities Repurchase agreenents Liabilities and Equity $ 9,400 27,000 46,000 94,000 19,000 4,400 Demand deposits. NON accounts $ 23,000 93,000 32,000 23,000 $ 171,000 12,000 4,000 12,800 $ 199,800 Retail CDs Loans Debentures Fixed assets Total liabilities Common stock Paid-in capital Retained earnings Other assets Total assets $ 199,000 Total liabilities and equity Incone Statement (In millions) Interest on fees and loans Interest on investnent securities Interest on repurchase ogreements Interest on deposits in banks Total interest incone Interest on deposits Interest on debentures Total interest expense Net interest income Provision for loan losses Noninterest hcome Noninterest expenses Income before taxes Taxes $ 9,400 4,400 6,400 1,400 $ 21, 600 $ 9,400 2,400 $ 11,800 $ 9,800 2,400 2,400 1,400 $ 8,400 3,200 $5,200 Net income For Megolopolis, calculate (Round your percentage enswers and equity multiplier to 2 decimal places. (e.g. 32.16) For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 3216)): a Return on equity 18.06 % b Return on assets 2.60 % Asset utilization 12.01 % 6.94 X 21.67 % C. d. Equity multiplier e. Profit margin If. Interest expense ratio % Provision for loan loss ratio % h. Noninterest expense ratio Tax ratio Megalopolis Bank has the following balance sheet and income statement Balance Sheet (in millions) Assets Cash and due from banks Investnent securities Repurchase agreenents Liabilities and Equity $ 9,400 27,000 46,000 94,000 19,000 4,400 Demand deposits. NON accounts $ 23,000 93,000 32,000 23,000 $ 171,000 12,000 4,000 12,800 $ 199,800 Retail CDs Loans Debentures Fixed assets Total liabilities Common stock Paid-in capital Retained earnings Other assets Total assets $ 199,000 Total liabilities and equity Incone Statement (In millions) Interest on fees and loans Interest on investnent securities Interest on repurchase ogreements Interest on deposits in banks Total interest incone Interest on deposits Interest on debentures Total interest expense Net interest income Provision for loan losses Noninterest hcome Noninterest expenses Income before taxes Taxes $ 9,400 4,400 6,400 1,400 $ 21, 600 $ 9,400 2,400 $ 11,800 $ 9,800 2,400 2,400 1,400 $ 8,400 3,200 $5,200 Net income For Megolopolis, calculate (Round your percentage enswers and equity multiplier to 2 decimal places. (e.g. 32.16) For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 3216)): a Return on equity 18.06 % b Return on assets 2.60 % Asset utilization 12.01 % 6.94 X 21.67 % C. d. Equity multiplier e. Profit margin If. Interest expense ratio % Provision for loan loss ratio % h. Noninterest expense ratio Tax ratio
Expert Answer:
Answer rating: 100% (QA)
a Return on equity net incometotal equity 5200199800171000 1806 b Retu... View the full answer
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
Posted Date:
Students also viewed these accounting questions
-
Megalopolis Bank has the following balance sheet and income statement. For Megalopolis, calculate: a. Return on equity b. Return on assets c. Asset utilization d. Equity multiplier e. Profit margin...
-
The following balance sheet and income statement information includes actual data for 2011 and forecasted data for 2012: Prepare a forecasted statement of cash flows for 2012. Use the indirect method...
-
The following balance sheet and income statement are for Weber Industries. The firms stock currently is priced at $6.00 per share. Calculate and interpret the companys Z score. Weber Industries...
-
Assume your company shows the market values of equity and debt at the level of $175373 and $224626, respectively. The rate of return on assets is 33 percent and its volatility is 45 percent. The...
-
What is a JDBC, and what is it used for?
-
Suppose that Sony sold $1,040,000, 5-year, 7% bonds on January 1, 2025 for $1,008,000. The company uses straight-line amortization. Complete the following bond amortization schedule for 2025 and...
-
Explain the difference between internal marketing and external relationship marketing. How are they interconnected?
-
Rick and Debbie Siravo own a beachfront home in Wrightsville Beach, N.C. During the year, they rent it for 20 weeks (140 days) at $1,100 per week and use it 10 days for personal purposes. Rick...
-
Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end: Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) Debits $...
-
SEC regulation, tax and working papers. Marshall and Wyatt, CPA, have been for several years the independent auditors of Interstate LDC Land Development Corporation of New Orleans, Louisiana. During...
-
Calculate the partial derivative using implicit differentiation: xy + sin(zz) + y = 0 y
-
South Charleroi Airport is a regional airport serving the leisure travel market. The inverse demand curve for this airport is P = 150 Q. Assume that there are only two airlines serving this airport,...
-
Suppose that \(x_{i}\) is endogenous in the regression \(y_{i}=\beta_{1}+\beta_{2} x_{i}+e_{i}\). Suppose that \(z_{i}\) is an instrumental variable that takes two values, one and zero with...
-
Demosthenes, the great Greek orator of antiquity, is supposed to have claimed that the most important canon was delivery, the second most important was delivery, and the third most important was...
-
Angrist and Krueger (1991) use quarter of birth as an instrumental variable to estimate the returns to schooling, using a sample of 327,509 from the 1980 census. The model of interest is \(\ln (W A G...
-
Changing a nations eating habits is a Herculean task, but the physical and financial health of the United States depends on it. You work for the USDA Center for Nutrition Policy and Promotion, and...
-
The chlorofluorocarbon CCl 2 F 2 ( Freon; MW = 1 2 0 . 9 1 g / mol ) was once used as a refrigerant. Cooling comes from the evaporation of the refrigerant. Calculate the mass of CCl 2 F 2 that must...
-
Assume you are the accountant for Catalina Industries. John Catalina, the owner of the company, is in a hurry to receive the financial statements for the year ended December 31, 20X1, and asks you...
-
Metrobank offers one-year loans with a 9 percent stated rate, charges a percent loan origination fee, imposes a 10 percent compensating balance requirement, and must pay a 6 percent reserve...
-
Why must an account officer be well versed in the FIs credit policy before talking to potential mid-market business borrowers?
-
A municipal bond you are considering as an investment currently pays a yield of 6.75 percent. a. Calculate the tax equivalent yield if your marginal tax rate is 28 percent. b. Calculate the tax...
-
Have you ever been informed of the information flow in your unit or division?
-
If so, did you receive the information in a formal seminar or in an informal manner, oneon-one with another individual? Do you think this was the best way? Why?
-
Do you know about the chart of accounts in your organization as it pertains to information you receive?
Study smarter with the SolutionInn App