Question: Please show work clearly and answer the second multiple choice, thanks! What is the difference between a bank's return on assets (ROA) and its return
Please show work clearly and answer the second multiple choice, thanks!
What is the difference between a bank's return on assets (ROA) and its return on equity (ROE)? A bank's return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's after-tax profit to the value of its capital. A bank's return on assets (ROA) is the ratio of a bank's after-tax profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital. A bank's return on assets (ROA) is the ratio of a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's aftertax profit to the value of its capital. A bank's return on assets (ROA) is the ratio of a bank's gross profit to the value of its assets. Return on equity (ROE) is the ratio of the value of a bank's gross profit to the value of its capital. How are they related? ROA is equal to ROE divided by the ratio of bank
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