The Following Financial Information Pertains to Harrison Bank -What Is the Bank's ROA?
A)1

question 8

Multiple Choice

The following financial information pertains to Harrison Bank.
$\begin{array} { c r } \text { Net Profit Margin } & 12.5 \% \\\text { Net Income } & \$ 1000 \\\text { Total Assets } & \$ 62,500 \\\text { Total Equity } & \$ 6250\end{array}$
-What is the bank's ROA?

• A)1.6%
• B)10%
• C)12.8%
• D)16%
• E)None of the options is correct

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Definitions:

Debt Investments

Investments made in securities that require the issuer to repay the principal along with interest.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and close to their maturity.

Internal Audits

Evaluations conducted internally to assess the effectiveness of a company's operations, controls, and compliance with regulations and policies.

Collusion

An illegal agreement between parties to deceive or defraud others, often involving price-fixing or the manipulation of markets.