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Problem 12-10 (LG 12-5) Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities and Equity Demand deposits Cash
Problem 12-10 (LG 12-5) Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities and Equity Demand deposits Cash and due from banks Investment securities $ 10,800 41,000 60,000 $ 37,000 107,000 NOW accounts Retail CDs Repurchase agreements Loans 46,000 37,000 108,000 Debentures Fixed assets Total liabilities $ 227,000 33,000 5,800 Other assets Common stock Paid-in capital 12,000 4,000 Retained earnings 15,600 Total assets $ 258,600 Total liabilities and equity $ 258,600 $ 10,800 5,880 7,880 2,800 Income Statement (in millions) Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures Total interest expense Net interest income Provision for loan losses $ 27,200 $ 10,800 3,800 $ 14,600 $ 12,600 3,500 Noninterest income 3,800 2,880 Noninterest expenses Income before taxes $ 10,100 4,200 Taxes Net income $ 5,900 For Megalopolis, calculate (Round your percentage answers and equity multiplier to 2 decimal places. (e.g., 32.16)): e. f. 9- h. i. Profit margin Interest expense ratio Provision for loan loss ratio Noninterest expense ratio Tax ratio %6 %6 %6 %6 %6
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