7. If a bank's ROA is projected to be 1% this year, how much in assets for each $1 in capital is needed to achieve 10% ROE? What happens in ROA is expected to fall to 0.5%? 8. Bank L operates with an equity-to-asset ratio of 6%, while Bank S operates with a similar ratio of 10%. Calculate the equity multiplier for each bank and the corresponding return on equity if each bank earns 1.5% on assets. Suppose, instead, that both banks report an ROA of 1.2%. What does this suggest about financial leverage? 9. Explain how and why profitability ratios at small banks typically differ from those at large banks