Bank $Y$ and Bank $Z$ both have assets of $$1$ billion. The return on assets for both banks is the same. Bank $Y$ has liabilities of $$800$ million while Bank Z$\text{'}$s liabilities are $$700$ million. In which bank would you prefer to hold an equity stake?

Instructions: Enter your numeric responses rounded to the nearest whole number.

If both banks have $$1$ billion in assets and have the same return on assets, then net profit after taxes must be for the two banks. Bank Y has bank capital of $ million while Bank $Z$ has bank capital of $ million, so the return on enjuity is for Bank Z$.$

Bank $Z$ has a J leverage ratio than Bank Y; however, a higher portion of its assets is financed from nonborrowed funds. Therefore, Bank $Z$ represents a investment.