Post question 5 & 6 separately.
Leverage ratio assesses how much of assets are financed through debt | |||||||||
a | Leverage Ratio | Bank Assets /Bank Capital | |||||||
($1.2+$0.3+$1.5+$6+$2.5)/$3 | |||||||||
$11.5/$3 | |||||||||
3.83 | |||||||||
Return on Assets describes how efficiently the company is utilizing its assets to generate earnings | |||||||||
b | Return on Assets(ROA) | Net Profit after Taxes/Bank Assets | |||||||
$.8/($1.2+$.3+$1.5+$6+$2.5) | |||||||||
$.8/$11.5 | |||||||||
6.96% | |||||||||
Return on equity describes the profit generated by the company on the amount invested by equity holders | |||||||||
c | Return on Equity(ROE) | Net Profit after taxes /Bank Capital | |||||||
$.8/$3 | |||||||||
26.67% |
Assets Reserves at the Fed 1.2 million Checkable Deposits 0.3 million Saving Deposits 15 million Time...