4- DHC Bank has ROE of 23%, capitalization ratio 21%, net interest margin 13% and tax rate is 40%. If the total interest income is 350,000 exceeding the total interest expense by 15%. The pretax net operating income is $88,000, security loss $10,100 and extraordinary gain $1,020. Then how much is the percentage of earning assets from the total assets?* a-31.52% b-35.20% C-28.92% d-20.79% e- None of the above

4- DHC Bank has ROE of 23%, capitalization ratio 21%, net interest margin 13% and tax rate is 40%. If the total interest income is 350,000 exceeding the total interest expense by 15%. The pretax net operating income is $88,000, security loss $10,100 and extraordinary gain $1,020. Then how much is the percentage of earning assets from the total assets?* a-31.52% b-35.20% C-28.92% d-20.79% e- None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on notes and bonds 20,000 ID, rental revenue 15,000 ID, bank exp. 10,00O ID, dividends received 5,000 ID, So what * ?is the net profit before tax
Assume you are given the following relationships for the Haslam Corporation:Sales/total assets 1.2Return on assets (ROA) 4%Return on equity (ROE) 7%Calculate Haslam’s profit margin and liabilities-to-assets ratio. Suppose half its liabilities are in the form of debt. Calculate the debt-to-assets ratio.
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