Q No 3. From the given tables calculate Return on Equity, Cost of Debt and Operating Expense Ratio. The income statement of a company shows the change in the wealth of shareholders (the equity) over a specific period of time. (E-Bank's income statement) Income statement ($ million) Interest income Fees from services 90 30 + > 11 Interest expenses -70 Provisions for bad debt--10 Operating expenses -22 Interest earned on loans and bonds Commissions from services (ex: credit Card fees) Interest paid on deposits Provisions for losses on loans Noninterest expenses such as wages, computers > Profit before tax Corporate tax (40%) .. 18 -7.2 Profit after tax 10.8 E-Bank's balance sheet is similar to the one presented in Stage One. Balance sheet ($ million), 31 December Assets Liabilities 1100 Debt: 1000 (including deposits) Equity: 100%