1- ROOF Bank has a total interest expense representing 34% of the total interest income. The pretax net operating income is $5,400,000. The ROA is 16% knowing that 62% of the total assets are earning assets and tax rate is 40%. The Net Interest margin of ROOF Bank is 7%. Knowing that ROOF Bank has no extra ordinary losses nor gain. The total interest income equals:* Oa-$1,331,590.91 b- $1,250,229.54 c- $1,285,305.76 d- $1,370,708.59 e-None of the above

1- ROOF Bank has a total interest expense representing 34% of the total interest income. The pretax net operating income is $5,400,000. The ROA is 16% knowing that 62% of the total assets are earning assets and tax rate is 40%. The Net Interest margin of ROOF Bank is 7%. Knowing that ROOF Bank has no extra ordinary losses nor gain. The total interest income equals:* Oa-$1,331,590.91 b- $1,250,229.54 c- $1,285,305.76 d- $1,370,708.59 e-None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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