Bank A has the following balance sheet as December 31, 2020:

Reserves $5m, loans $40m, and Deposits $35m. Net profit of the bank is $2m

1. The return on equity of the bank is 0.15. how much is the capital of the bank?
2. Calculate the return on assets, and the equity multiplier.
3. Additional deposits of $5m were added and $3m of loans were offered to new clients. Recalculate the return on assets, the return on equity, and the equity multiplier.
4. The Manager of Bank decided to increase the Return on Equity. What are the appropriate actions would the manage take?