Bank asset grow over the next year for ratio not to fall

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A bank has ROE of 17% and its retention ratio is 34%. It has assets of $883 million and the equity-to-assets ratio of 8.8%. The bank wants to maintain the equity-to-assets ratio of at least 7.3%. By what percentage can the bank’s asset grow over the next year for the ratio not to fall below this level? Assume that the ROE and retention ratio do not change. Report the answer to the nearest 0.01% (e.g., if your answer is 15.27%, submit it as 15.27).

Reference no: EM132014557

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