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A firm has the following financial statement data: Sales = $1,000,000, COGS = $500,000, Operating Expenses = $200,000, and Tax Rate = 30%. What is

  1. A firm has the following financial statement data: Sales = $1,000,000, COGS = $500,000, Operating Expenses = $200,000, and Tax Rate = 30%. What is the firms profit margin?

  1. Use the following information for questions a) c)

A bank currently just meets its total capital requirements of 8%. The bank currently has a dividend payout ratio of 25%. Assets are expected to grow at 5%.

  1. What is the required ROA to support the growth in assets?
  2. If the bank expects its ROA to be 0.5%, what is the maximum dividend payout ratio to support the increase in assets?

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