Muntaha Tasneem (dc200200297)

Money and Banking (MGT411)

Assignment No. 2

1) Net Profit after tax:

Return on Assets: Net profit after tax / Total Assets

4% = Net profit after tax/750
Net Profit after tax = 30 (answer)

2) Return on Equity (ROE)

Return on Equity = Net profit after tax / Total Equity or Capital
ROE = 30 / 120
ROE = 25% (answer)

3) Leverage Ratio
Leverage ratio = Total Capital / Total Assets
Leverage ratio = 120 / 750
Leverage ratio = 0.16x or 16% (answer)

4) Debt to Equity

Debt to Equity = Debt / Equity

Debt to Equity = 200/120
D/E = 1.67x (answer)

5) Advance to Deposits Ratio

Advances to Deposits = Advance / Deposits

Advances to Deposits = 500 / 430
Advances to Deposits = 1.1628x (answer)