The following financial information pertains to Harrison Bank.
$\begin{array} { c r }
\text { Net Profit Margin } & 12.5 \% \
\text { Net Income } & \$ 1000 \
\text { Total Assets } & \$ 62,500 \
\text { Total Equity } & \$ 6250
\end{array}$
-What is the bank's ROE?
A)1.6%
B)10 %
C)12.8%
D)16%
E)None of the options is correct

Question

The following financial information pertains to Harrison Bank.
$\begin{array} { c r } 
\text { Net Profit Margin } & 12.5 \% \
\text { Net Income } & \$ 1000 \
\text { Total Assets } & \$ 62,500 \
\text { Total Equity } & \$ 6250
\end{array}$
-What is the bank's ROE?
A)1.6%
B)10 %
C)12.8%
D)16%
E)None of the options is correct

Quizplus · Accepted Answer

ROE (Return on Equity) is calculated as (Net Income / Total Equity) * 100. For Harrison Bank, ROE = ($1000 / $6250) * 100 = 16%.

The Following Financial Information Pertains to Harrison Bank -What Is the Bank's ROE? A)1

The Following Financial Information Pertains to Harrison Bank -What Is the Bank's ROE?
A)1