Oceanside Bank Converts a Dollar of Equity into 10 Cents

question 47

Multiple Choice

Oceanside Bank converts a dollar of equity into 10 cents of net income and has $9.50 in assets per dollar of equity capital. Oceanside also has a profit margin of 15 percent. What is Oceanside's AU ratio?

• A)1.05 percent
• B)3.55 percent
• C)5.56 percent
• D)6.45 percent
• E)7.02 percent

---

Definitions:

Manufacturing Facilities

Physical locations equipped with machinery and labor, where raw materials are transformed into finished products.

Logistics Cost

Expenses associated with the planning, implementation, and control of the movement and storage of goods and services, from origin to consumption.

Response Time

The duration it takes for a system or business process to react to a specific input or request.

Network Design Decisions

Strategic choices regarding the configuration and management of a logistics or supply chain network to optimize efficiency and service levels.