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What is first national''s roe now

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1. Suppose that the value of a bank's assets is $40 billion and the value of its liabilities is $36 billion. If the bank has ROA = 2%, then what is its ROE?

2. Suppose First National Bank has $200 million in assets and $20 million in equity capital.

a. If First National has a 2% ROA, what is its ROE?

b. Suppose First National's equity capital declines to $10 million, while its assets and ROA are unchanged. What is First National's ROE now?

Reference no: EM131304278

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