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Can someone explain how to get ROA? Please show working for all ROA calculations. Thank you! Case Assets Non-interest-bearing liabilities Interest-bearing liabilities Shareholders' equity A
Can someone explain how to get ROA? Please show working for all ROA calculations. Thank you!
Case Assets Non-interest-bearing liabilities Interest-bearing liabilities Shareholders' equity A 1,000 0 0 1,000 B 1,000 0 250 750 1,000 0 500 500 D 1,000 0 500 500 E 1,000 200 0 800 F 1,000 200 300 500 120 50 100 0 Earnings before interest and taxes Interest expense Earnings before taxes Tax expense (40%) Net income 120 0 120 48 72 120 25 95 38 57 70 80 50 30 12 18 100 80 30 50 20 30 28 42 40 60 ROE ROA ROFL 7.2% 7.2% 0.0% 7.6% 7.2% 0.4% 8.4% 7.2% 1.2% 3.6% 4.8% -1.2% 7.5% 6.0% 1.5% 6.0% 4.8% 1.2%Step by Step Solution
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