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The Silver Mountain Bank Has Interest Revenue of 10%, Interest

Question 7

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The Silver Mountain Bank has interest revenue of 10%, interest expense of 6%, a provision for loan loss to assets of 1%, noninterest expense of 4%, and noninterest revenue of 2%, and equity to total assets of 10%. What is the bank's NIM%, Burden%, OROA, and what is its OROE? If the bank's equity to total assets ratio went up to 11%, what would be the new OROE?

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