FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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3- The total interest expense is 37% of the Net Interest Income that is $1,260,000
and the adjusted operating income is $980,000. The profit margin is 12.61% and
the asset utilization ratio is 62% and the capitalization ratio is 58%. Then by how
much does ROE exceed ROA if the average earning assets are 60% from the
total assets? *
a- 5.78%
b- 6.45%
C-5.66%
d- 6.86%
O e- None of the above
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Transcribed Image Text:3- The total interest expense is 37% of the Net Interest Income that is $1,260,000 and the adjusted operating income is $980,000. The profit margin is 12.61% and the asset utilization ratio is 62% and the capitalization ratio is 58%. Then by how much does ROE exceed ROA if the average earning assets are 60% from the total assets? * a- 5.78% b- 6.45% C-5.66% d- 6.86% O e- None of the above
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