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Kindly Answer the question as early as possible I need it urgently. your answer will be upvoted. b) Assume that the following data is extracted
Kindly Answer the question as early as possible I need it urgently. your answer will be upvoted.
b) Assume that the following data is extracted from the financial statements of Richy-Rich bank: equity is $350 million, interest expense is $115 million, provision for loan loss (P) is $35 million, noninterest income is $30 million, noninterest expense is $50 million and a tax rate is 33%. What is the minimum total interest income required to give a return on equity (ROE) of 20% ? Show workings when necessary. [4 marks] c) Be-smart Bank reported an equity multipler ratio of 6.5 at the end of year 2021. If the bank's total debt at the end of year 2021 was $5 million, how much of its assets were financed with equity? Show calculations when necessaryStep by Step Solution
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