Midtown Bank Has Net Income of $50 Million, Total Assets

question 25

Multiple Choice

Midtown Bank has net income of $50 million, total assets of $1 billion, and equity capital of $500 million. Midtown's ROE is

• A)2.5%.
• B)5.0%.
• C)7.5%.
• D)10.0%.

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Definitions:

Chordate Notochord

A flexible rod made out of a material similar to cartilage that provides support in all chordates at some stage of their development.

Eutherian Mammal

Mammals that are characterized by a complex placenta that allows a long gestation period within the uterus, leading to the birth of relatively well-developed offspring.

Insectivora

An obsolete term for an order of mammals, now split into various orders, that are characterized by feeding on insects and other small invertebrates.

Closed Circulatory System

A circulatory system where blood is contained within vessels and is separated from bodily tissues, as seen in vertebrates.