Suppose that a bank has equity of $200 million, interest expense of $90 million, provision for loan
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Question:
Suppose that a bank has equity of $200 million, interest expense of $90 million, provision for loan loss of $26 million, noninterest income of $35 million, noninterest expense of $45 million and a tax rate of 36%. What is the interest income required to give a ROE of 20%?
$170.45 mil
$236.72 mil
$188.50 mil
$200.61 mil
$190.00 mil
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