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The following financial information pertains to Harrison Bank. Net Profit Margin 12.50% Net Income $1,000 Total...

The following financial information pertains to Harrison Bank. Net Profit Margin 12.50% Net Income $1,000 Total Assets $62,500 Total Equity $6,250 ROE 16% Net Income $1,000 Total Assets $62,500 Total Equity $6,250 See the financial information for Harrison Bank. What is the bank's ROE? A. None of the options is correct B. 16% C. 1.60% D. 10% E. 12.80%

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Answer #1

Return on equity is equal to=net income/equity

=$1000/$6250

which is equal to

=16%

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