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Based on the following information about Banks A and B, compute for each the return on assets (ROA), return on equity (ROE), and leverage ratio.

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Based on the following information about Banks A and B, compute for each the return on assets (ROA), return on equity (ROE), and leverage ratio. a. Bank A has net profit after taxes of $1.8 million and the following balance sheet: Assets Reserves Loans Securities Bank Balance Sheet (in millions) Liabilities $5 Deposits $70 Borrowing $45 Bank Capital $100 $10 $10 The return on assets (ROA) for Bank A: percent percent The return on equity (ROE) for Bank A. The leverage ratio for Bank A: b. Bank B has net profit after taxes of $0.9 million and the following balance sheet: Assets Reserves Loans Securities Bank Balance Sheet (in millions) Liabilities $7.5 Deposits 575.0 $55.0 Borrowing $3.0 $23.5 Bank Capital 58.0 Instructions: Enter your responses rounded to two decimal places The return on assets (ROA) for Bank B percent percent The return on equity (ROE) for Bank B The leverage ratio for Bank B

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