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a. County Bank has total assets of $135 billion and equity capital of $9 billion. Its return on assets (ROA) is 1.5%. i. What is
a. County Bank has total assets of $135 billion and equity capital of $9 billion. Its return on assets (ROA) is 1.5%. i. What is the return on equity (ROE) of County Bank? ii. What is County Bank's net profit after tax? Show all the calculations. 4 marks Consider the following financial data of Southern Bank and Northern Bank: b. Southern Bank Northern Bank 12% 28% Return on Equity (ROE) Return on Assets (ROA) 1.2% 1.2% Compare the leverage position of Southern Bank versus Northern Bank. Determine which bank faces a more risky capital structure. Explain your
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