Use the Following Information for Questions

question 13

Multiple Choice

Use the following information for questions
A bank currently just meets its total capital requirements of 8%. The bank currently has a dividend payout ratio of 35%. Assets are expected to grow at 5%.
-If the bank expects its ROA to be .45%, what is the maximum dividend payout ratio to support the increase in assets?

• A) 11.1%
• B) 22.2%
• C) 33.3%
• D) 44.4%
• E) 89.9%

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