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If the Net Noninterest Income Were to Increase to −$16,what

Question 45

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If the net noninterest income were to increase to −$16,what would the average loan rate (ALR)have to be to generate a 12 percent ROE? Compared to the industry,does this ALR appear feasible? If not,what options does FNB have?
If the net noninterest income were to increase to −$16,what would the average loan rate (ALR)have to be to generate a 12 percent ROE? Compared to the industry,does this ALR appear feasible? If not,what options does FNB have?
If the net noninterest income were to increase to −$16,what would the average loan rate (ALR)have to be to generate a 12 percent ROE? Compared to the industry,does this ALR appear feasible? If not,what options does FNB have?
If the net noninterest income were to increase to −$16,what would the average loan rate (ALR)have to be to generate a 12 percent ROE? Compared to the industry,does this ALR appear feasible? If not,what options does FNB have?

Correct Answer:

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NI/Equity = 0.12; NI/$125 = 0.12 so NI =...

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