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Delta Group holds total assets of $50 million and equity capital of $15 million and has just posted an ROA of 5% percent. a) What
Delta Group holds total assets of $50 million and equity capital of $15 million and has just posted an ROA of 5% percent. a) What is the financial firms ROE? b) Suppose Delta Group finds its ROA climbing by 30 percent, with assets and equity capital unchanged. What will happen to its ROE? Why? c) On the other hand, suppose the banks ROA drops by 30 percent. If total assets and equity capital hold their present positions, what change will occur in ROE
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