In a recent year, a bank earned $36 million in interest on its assets of $523 million, it paid out $9 million in interest on its liabilities (excluding capital) of $470 million, and it paid its workers $21.5 million in total compensation. Calculate the bank's spread and its return on equity.
What will be an ideal response?
Spread = 36/523 ? 9/470 = 4.0% approximately. Profit = $36 ? $9 ? $21.5 = $5.5 millionEquity capital = $523 ? $470 = 53; ROE = 5.5/53 = 10.4%
You might also like to view...
During his class, Peter often looks at an online dictionary to understand some of the words his professor uses. When Peter does this, he is looking for ______.
a. denotative meaning b. synonyms c. connotative meaning d. syntax
The existence of one or more risk factors means that there is a material misstatement present
a. True b. False Indicate whether the statement is true or false
Which performance management technique involves the description of a large number of actions on the part of the employee, and then classifies these incidents into performance dimensions along a continuum?
A. Behaviorally anchored rating scale B. Operational rating scale C. Ranking D. Critical incidents E. MBO
Which of the following is a technology that shares and analyzes information in the supply chain?
A) Internet B) Enterprise Data Planning (EDP) C) Electronic Resource Interchange (ERI) D) Chain Management (CM) software