7. As a manager of a Bangladeshi bank, you anticipate the following: Loan loss provision at end of year = 1 percent of assets Gross interest income over the next year = 10 percent of assets Noninterest income over the next year = 2 percent of assets Noninterest expenses over the next year = 3 percent of assets Tax rate on income = 20 percent Capital ratio (capital/assets) at end of year = 20 percent

a. Forecast the Banks net interest margin. (0.50 point)

b. Forecast the Banks earnings before taxes as a percentage of assets. (1.00 point)

c. Forecast the Banks earnings after taxes as a percentage of assets. (0.50 point)

d. Forecast the Banks return on equity. (1.00 point)