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b. Bank B has net profit after taxes of $2 million and the following balance sheet: Bank Balance Sheet (in millions) Assets Liabilities and Capital
b. Bank B has net profit after taxes of $2 million and the following balance sheet:
Bank Balance Sheet | |||
(in millions) | |||
Assets | Liabilities and Capital | ||
Reserves | $10 | Deposits | $70 |
Loans | $45 | Borrowings | $5 |
Securities | $30 | Bank Capital | $10 |
Instructions: Enter your responses rounded to two decimal places.
The return on assets (ROA) for Bank B:
The return on equity (ROE) for Bank B:
The leverage ratio for Bank B:
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