You must show all your work. Problem 1: Based on the balance sheet and income statement below, calculate the ROA, ROE, and rate sensitivity gap for each question below. For each question, begin with the original numbers when calculating your answers. Show your work in each case. (20 pts) Suppose Melvin's Bank starts with the balance sheet and the income statement as shown below: Melvin's Bank - Initial Balance Sheet Liabilities and Net Worth Assets $10 $40 Checking Deps Non-transaction deposits Reserves $40 $20 $100 $20 Securities $70 $100 Net Worth Loans Total Total Melvin's Bank - Income Statement Securities (2%) Loans (8 %, fixed rate) Total Interest Income $3.00 Letters of Credit $1.00 Other fees $4.00 Total Non-interest Income Total Income Savings accounts (4 %) $6.40 Non-interest expense $ Total Expense $ Profits (Net Earnings) Based on the balance sheet and income statement above, calculate the ROA, ROE, and rate sensitivity gap for each question below. Show your work. a. For the statements above, calculate the following ROA ROE Rate Sensitivity b. The bank now issues $20 of new stock and uses the proceeds to make loans. For this question, begin with the original numbers when calculating your answers. ROA ROE Rate Sensitivity