Question
Arab Bank has the following financial information. (5 marks; 1 mark each) Balance Sheet Income Statement Cash $100 Interest Income $400 Securities Investments $600 Interest
Arab Bank has the following financial information. (5 marks; 1 mark each)
| Balance Sheet |
| Income Statement |
|
| Cash | $100 | Interest Income | $400 |
| Securities Investments | $600 | Interest Expenses | ($150) |
| Net Loans | $1200 | Non-Interest Income | $50 |
| Net Premises and Equip. | $300 | Non-Interest Expenses | ($100) |
| Total Assets | $2200 | Provision for Loan Losses | ($60) |
| Deposits | $1100 | Pre-Tax Net Operating Income | $140 |
| Non-Deposit Borrowings * | $800 | Securities Gains (Losses) | ($40) |
| Equity Capital | $300 | Taxes | ($45) |
| Total Liabilities and Equity | $2200 | Net Income | $55 |
| * All Purchased Funds |
|
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|
- Use this information to calculate Arab Banks ROE
- Use this information to calculate Arab State Banks ROA
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- Use this information to calculate Arab Banks equity multiplier
- Use this information to calculate Arab Banks ROE if the equity multiplier is 10
- Use this information to calculate Arab Banks NIM
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
