The First Bank of the Ozarks generates $0.0155 dollars of net income per dollar of assets and it has a profit margin of 12.25%. How much operating income per dollar of total assets does First Bank generate?

Question

Quizplus · Accepted Answer

To calculate operating income per dollar of total assets, we need to divide net income per dollar of assets by the profit margin:

Operating Income per Dollar of Total Assets = Net Income per Dollar of Assets / Profit Margin

Plugging in the given values:

Operating Income per Dollar of Total Assets = 0.0155 / 0.1225 = 0.1265 or 12.65%

Therefore, the best choice is B.

The First Bank of the Ozarks Generates $0