a. Compute SB's (annual) return on assets and the return on equity

Ideally answer (a)-(d) in the white space below (so in Brightspace). In (b) and (c) we are asking you to present balance sheets. You may attach a picture for these questions, but you can also answer as follows: \"Assets: Asset #1, Asset #2, etc. Liabilities: Liability #1, Liability #2, etc \" Consider Solid Bank (SB) with the following balance sheet. All amounts are in millions of dollars. The annual return on Loans is 6% (on average). However loans are illiquid: should they ever be sold prematurely, they earn merely 50% on the dollar (example: if $10M of loans are sold today, then that generates $5M in revenue). Liquid assets don't earn any interest, but can be sold at full value even at short notice. Deposits don't pay interest. Bonds carry a 4% interest. Apart from interest, assume the bank incurs $6M in costs annually for its personnel, computer systems, marketing, etc. In the context of this question, assume bankruptcy happens as soon as the bank's equity becomes negative. 3 Assets