You were recently hired by an investment company and you have to investigate the performance...
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Finance
- You were recently hired by an investment company and you have to investigate the performance of two competing banks: Bank RunAway and LoanShark Bank.
- Based on the information below, compute the Banks' Return on Average Assets (ROAA) and Return on Average Equity in 2020. (5 points)
- Based on the information below, compute the Banks' Return on Average Assets (ROAA) and Return on Average Equity in 2020. (5 points)
|
| RunAway Bank | LoanShark Bank | ||
|
| 2020 | 2019 | 2020 | 2019 |
| Net Income ($) | 2,750,000 | 2,250,000 | 250,000 | 200,000 |
| Total Asset | 48,000,000 | 47,000,000 | 2,000,000 | 180,000 |
| Total Equity | 12,500,000 | 12,000,000 | 1,000,000 | 1,000,000 |
- Based on the information obtained in your answer A. Which bank do you think that managed better its assets in 2020? (2 points)
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