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1. Megalopolis Bank has the following balance sheet and income statement Balance Sheet (in millions) Assets Liabilities and Equity Cash and due from banks Investment

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1. Megalopolis Bank has the following balance sheet and income statement Balance Sheet (in millions) Assets Liabilities and Equity Cash and due from banks Investment securities Repurchase agreements Loans Fixed Assets Other assets Total assets $9,000 23,000 42.000 90,000 15,000 4.000 $183,000 Demand deposits $19,000 NOW accounts 89,000 Retail CDs 28.000 Debentures 19.000 Total liabilities $155,000 Common stock 12,000 Paid in capital 4,000 Retained earnings 12.000 Total liabilities and equity $183,000 Income Statement Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures Total interest expense Operating income Provision for loan losses Other income Other expenses Income before taxes Taxes Net income $9.000 4,000 6,000 1000 $20,000 9,000 2.00 $11,000 $9,000 2.000 2.000 1.000 $8.000 3.000 $5,000 For Megalopolis, calculate: a. Return on equity b. Return on assets c. Equity multiplier d. Profit margin

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