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LA Bank reports total operating revenue of $150 million, with total operating expenses of $125 million, and owes taxes $5 million. It has total assets
LA Bank reports total operating revenue of $150 million, with total operating expenses of $125 million, and owes taxes $5 million. It has total assets of $1.00 billion and total liabilities of $850 million.
How will the ROE for OK State Bank change if total operating expenses, taxes, and total operating revenues each grow by 10% while the liabilities remain fixed?
a. 14.67%
b. 1.33%
c. 13.33%
d. -1.33%
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