Q-1 A security analyst calculates the following ratios for the two banks: Ratio Bank A Bank B Return on Equity 22% 24% Return on Assets 2% 2.5% Equity Multiplier Profit Margin Asset Utilization Spread...

Extracted text: Q-1 A security analyst calculates the following ratios for the two banks: Ratio Bank A Bank B Return on Equity 22% 24% Return on Assets 2% 2.5% Equity Multiplier Profit Margin Asset Utilization Spread Interest Expense ratio Provision on Loan Losses 11 X 18 X 15% 16% 13% 14% 3% 3% 35% 40% 1% 4% i. How should the financial analyst evaluate the financial health of the two banks? Discuss each ratio and which bank would you prefer and why? ii.