Suppose that: Banks Debt Ratio Total Liabilities Total Capital Net Income Bank Alpha 1.50 $3,106,717m $279,354m $27,410m Bank Beta 1.39 $2,059,798m $200,523m $11,370m Which one is the best performing bank? a. Bank Alpha b. Bank Beta c. Both Banks

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 1bM
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Suppose that:

Banks

Debt Ratio

Total

Liabilities

Total Capital

Net Income

Bank Alpha

1.50

$3,106,717m

$279,354m

$27,410m

Bank Beta

1.39

$2,059,798m

$200,523m

$11,370m

Which one is the best performing bank?

a. Bank Alpha
b. Bank Beta
c. Both Banks

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