Calculate the return on capital when capital = 100 and Liabilities = 1900

as shown, and for the case when capital = 50 and Liabilities = 1950, (with Assets = 2000 in both

cases), if the rate of return on assets is 8% and the rate of return (cost) on liabilities is 6%.

3. Suppose State Bank's initial balance sheet is as follows Assets Liabilities and Capital/Owners' Equity Reserves Loans Securities $100 Deposits $1200Debt $700 Capital $800 $1100 $100 (Owners Equity)