A regional bank has total assets of $250 million and equity capital of $20 million. If the bank's return on assets (ROA) is 0.8%, calculate the bank's return on equity (ROE). a. 8% b. 10% c. 12.5% d. 15%

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
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A regional bank has total assets of $250 million and
equity capital of $20 million. If the bank's return on
assets (ROA) is 0.8%, calculate the bank's return on
equity (ROE).
a. 8%
b. 10%
c. 12.5%
d. 15%
Transcribed Image Text:A regional bank has total assets of $250 million and equity capital of $20 million. If the bank's return on assets (ROA) is 0.8%, calculate the bank's return on equity (ROE). a. 8% b. 10% c. 12.5% d. 15%
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