a)
To determine:
a)

Explanation of Solution
Calculation of return on equity:
Therefore, return on equity is 17.86%
b)
To determine:
b)

Explanation of Solution
Calculation of ROA:
Therefore, return on assets is 2.73%
c)
To determine: Asset utilization.
c)

Explanation of Solution
Calculation of asset utilization:
Therefore, asset utilization is 12.02%
d)
To determine: Equity multiplier.
d)

Explanation of Solution
Calculation of equity multiplier:
Therefore, equity multiplier is 6.54X
e)
To determine: Profit margin.
e)

Explanation of Solution
Calculation of profit margin:
Therefore, profit margin is 22.73%
f)
To determine: Interest expense ratio.
f)

Explanation of Solution
Calculation of interest expense ratio:
Therefore, interest expense ratio is 9.09%
g)
To determine: Provision for loan loss ratio.
g)

Explanation of Solution
Calculation of provision for loan loss ratio:
Therefore, provision for loan loss ratio is 9.09%
h)
To determine: Non-interest expense ratio.
h)

Explanation of Solution
Calculation of non-interest expense ratio:
Therefore, non-interest expense ratio is 4.55%
i)
To determine: Tax ratio.
i)

Explanation of Solution
Calculation of tax ratio:
Therefore, tax ratio is 13.64%
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Chapter 12 Solutions
FIN. MARKETS & INSTITUTIONS >CUSTOM<W/CN
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