Determine the return on asset and sustainable growth rate

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Question - Using the data in the table below, determine the return on asset, sustainable growth rate, and projected capital ratio. Determine the critical variables that drives the return on asset.

Sustainable Internal Growth for Banks

Average total assets (in millions) $350.00

Average equity capital (in millions) $37.50

Expected net profit margin (%) 7.75

Expected yield on average total assets (%) 12.00

Cash dividend payout percentage (%) 30.00

Planned asset growth rate (%) 12.00

Reference no: EM133139653

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