Use the Following Information for Questions

Multiple Choice

Use the following information for questions
A bank currently just meets its total capital requirements of 8%. The bank currently has a dividend payout ratio of 35%. Assets are expected to grow at 5%.
-If the bank expects its ROA to be .45%, what is the maximum dividend payout ratio to support the increase in assets?

A) 11.1%
B) 22.2%
C) 33.3%
D) 44.4%
E) 89.9%