Calculate ROE, ROA, Net interest margin, Earnings per share, Net noninterest margin and Net operating margin. Alternative Scenarios: Suppose interest income, interest expenses, noninterest income, and noninterest expenses each decline by 5 percent while all other revenue and expense items shown in the preceding table remain unchanged. What will be happen to Rainbow ROE, ROA, and earnings per share?
5. The followings ate the information about Rainbow National Bank:
Report of Income Tk.
Interest income 1,250
Interest expense 500
Total assets 40,000
Securities losses or gains 1,000
Earning assets 30,000
Total liabilities 30,000
Taxes paid 1,000
Shares of common stock outstanding 3,000
Noninterest income 8,000
Noninterest expense 6,000
Provision for loan losses 2,500
Calculate
and Net operating margin.
Alternative Scenarios:
Suppose interest income, interest expenses, noninterest income, and noninterest
expenses each decline by 5 percent while all other revenue and expense items shown in
the preceding table remain unchanged. What will be happen to Rainbow ROE, ROA,
and earnings per share?
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