Question
Florida International Bank has a return on equity capital of 8 percent and a retention ratio of 30 percent. Suppose that the bank's earnings (measured
Florida International Bank has a return on equity capital of 8 percent and a retention ratio of 30 percent. Suppose that the bank's earnings (measured by ROE) drop unexpectedly to only one-third of the expected 8 percent figure. What would be the bank's ICGR?
-2.4%
-0.8%
0
0.8%
2.4%
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Financial Management Theory And Practice
Authors: Prasanna Chandra
7th Edition
0070656657, 978-0070656659
