Megalopolis Bank has the following balance sheet and income statement. (LG 12-5)

Income Statement Interest on fees and loans $ 9,000 Interest on fees and loans $ 9,000 Interest on investment securities 4,000 Interest on repurchase agreements 6,000 Interest on deposits in banks 1,000 Total interest income $20,000 Interest on deposits $ 9,000 Interest on debentures 2,000 Total interest expense $11,000 Net interest income $ 9,000 Provision for loan losses 2,000 Noninterest income 2,000 Noninterest expenses 1,000 Income before taxes $ 8,000 Taxes 3,000 Net income $ 5,000 For Megalopolis, calculate:

a. Return on equity

b. Return on assets

c. Asset utilization

d. Equity multiplier page 412

e. Profit margin

f. Interest expense ratio g. Provision for loan loss ratio h. Noninterest expense ratio i. Tax ratio

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