3- The total interest expense is 37% of the Net Interest Income that is $1,260,000 and the adjusted operating income is $980,000. The profit margin is 12.61% and the asset utilization ratio is 62% and the capitalization ratio is 58%. Then by how much does ROE exceed ROA if the average earning assets are 60% from the total assets? * a- 5.78% b- 6.45% C-5.66% d- 6.86% e- None of the above

3- The total interest expense is 37% of the Net Interest Income that is $1,260,000 and the adjusted operating income is $980,000. The profit margin is 12.61% and the asset utilization ratio is 62% and the capitalization ratio is 58%. Then by how much does ROE exceed ROA if the average earning assets are 60% from the total assets? * a- 5.78% b- 6.45% C-5.66% d- 6.86% e- None of the above

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 1PROB

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