Question
Question 20 A commercial bank is projected to achieve a ROA of 1.12% during the coming year. The bank desires to earn a ROE of
Question 20
A commercial bank is projected to achieve a ROA of 1.12% during the coming year. The bank desires to earn a ROE of 14%. What must the ratio of assets to equity capital be in order for this bank to achieve its target ROE of 14%?
| A. | None of the other responses are correct. | |
| B. | 12.73 | |
| C. | 0.08 | |
| D. | 12.50 | |
| E. | 10.91 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
