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Question
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%
Answer
This answer is hidden. It contains 78 characters.
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