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%.
-What is the required ROA to support the growth in assets?
A) 0.62%
B) 0.65%
C) 0.68%
D) 0.72%
E) 0.75%
Correct Answer:
Verified
Correct Answer:
Verified
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