The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent what is this bank's new net interest margin? A. 5.83 percent B. 7.09 percent C. 3.59 percent D. 5.38 percent
The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent what is this bank's new net interest margin? A. 5.83 percent B. 7.09 percent C. 3.59 percent D. 5.38 percent
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter9: The Cost Of Capital
Section: Chapter Questions
Problem 16P: Suppose the Schoof Company has this book value balance sheet: The notes payable are to banks, and...
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The First National Bank of Trinidad reports a net interest margin of 5.83 percent. It has total interest
revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets
of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and
earnings assets rise by 10 percent what is this bank's new net interest margin?
A. 5.83 percent
B. 7.09 percent
C. 3.59 percent
D. 5.38 percent
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