Question: or Megalopolis, calculate: a . Return on equity return on equity = 5 , 0 0 0 / 2 8 , 0 0 0 =

or Megalopolis, calculate:
a. Return on equity
return on equity =5,000/28,000=17.86%; note that $28,000 comes from equity
($183,000- $155,000)
b. Return on assets
return on assets =5,000/183,000=2.73%
c. Asset utilization
asset utilization =(20,000+2,000)/183,000=12.02%
d. Equity multiplier
equity multiplier =183,000/(12,000+4,000+12,000)=6.54X
e. Profit margin
profit margin =5,000/(20,000+2,000)=22.73%
f. Interest expense ratio
interest expense ratio =11,000/(20,000+2,000)=50.00%
g. Provision for loan loss ratio
provision for loan loss ratio =2,000/(20,000+2,000)=9.09%
h. Noninterest expense ratio
noninterest expense ratio =1,000/(20,000+2,000)=4.55%
i. Tax ratio

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