In: Finance
The DATA below, is given for Bank A;
Return on Assets:1,46 %
Return on Equity: 13,6 %
Net Profits: $ 120 Million
Based on this DATA, calculate the following values for Bank A.
-Total Assets in $:
-Total Equity in $:
-Equity Multiplyer (LEVERAGE):
Solution | ||
Given, | ||
Return on Assets= 1.46% | ||
Return on Equity = 13.6% | ||
Net Income = $120 Million | ||
We Know | ||
1 | Return on Assets = | Net Income |
Total Assets | ||
i.e. 0.0146 = | $120 Million | |
Total Assets | ||
i.e. Total Assets = | $ 8,219.18 Million | |
2 | Return on Equity = | Net Income |
Equity | ||
i.e. 0.136 = | $120 Million | |
Equity | ||
i.e. Equity = | $ 882.35 Million | |
3 | Equity Multiplier = | Total Assets |
Total Equity | ||
= | $ 8,219.18 Million | |
$ 882.35 Million | ||
= | 9.32 |