Correct option? ? General Accounting A regional bank has total assets of $250 million andequity capital of $20 million. If the bank's return onassets (ROA) is 0.8%, calculate the bank's return onequity (ROE).a. 8%b. 10%c. 12.5%d. 15%

Step 1: Define Return on Equity (ROE)Return on Equity (ROE) measures a company's profitability in…

Answered: A regional bank has total assets of…

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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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%