Determine what is first nationalís roe now

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Suppose First National Bank has $200 million of assets and $20 million of equity capital. If First National has a 2% return on assets (ROA), what is its return on equity (ROE)? Suppose First Nationalís equity capital declines to $10 million, while its assets and ROA are unchanged. What is First Nationalís ROE now?

Reference no: EM13241409

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