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Suppose First National Bank has $200 million of assets and $20 million of equity capital. If First National has a 2% return on assets (ROA),

Suppose First National Bank has $200 million of assets and $20 million of equity capital. If First National has a 2% return on assets (ROA), what is its return on equity (ROE)? Suppose First Nationals equity capital declines to $10 million, while its assets and ROA are unchanged. What is First Nationals ROE now?

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