Use the Following Information for Questions

question 5

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%.
-What is the required ROA to support the growth in assets?

• A) 0.62%
• B) 0.65%
• C) 0.68%
• D) 0.72%
• E) 0.75%

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Definitions:

Projective Identification

A psychological concept where individuals project their own emotions or desires onto others, who then may internalize and exhibit those projected feelings or behaviors.

Affect

A psychological term referring to the experience of feeling or emotion.

Social Contagion

The spread of behaviors, attitudes, or emotions through groups of people, as if contagious, often studied in the context of crowd behavior, rumors, or health behaviors.

Affective

Pertaining to emotions or feelings; capable of eliciting or influenced by emotional responses.