The Following Information Is Available on the Average Costs of the Three

question 12

Multiple Choice

The following information is available on the average costs of the three major banks in a given local market.Bank A has assets of $10 million and average costs are 15 percent,Bank B has assets of $20 million and average costs of 13 percent while Bank C has assets of $30 million with average costs of 12 percent.Average costs are measured as a proportion of total assets.

Bank B plans to acquire Bank A and in the process cut costs by $100,000.What is the combined bank's average costs?

• A)12.00 percent.
• B)12.67 percent.
• C)13.00 percent.
• D)13.33 percent.

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Definitions:

Ethyl β-D-Galactopyranoside

A chemical compound that consists of ethyl and galactose molecules, where the galactose component is in the pyranose ring form and the anomeric carbon is in the beta configuration.

Methyl Glycoside

A compound resulting from the reaction of a sugar with methanol where the sugar's anomeric carbon is linked to a methoxy group.

Galactose

A simple sugar (monosaccharide) that, together with glucose, forms lactose, the principal sugar in milk.

Hydrolyzed

A chemical process in which a molecule is broken down into smaller units by the addition of water.