As a financial institutions and market analyst for MoreGaine Securities, a highly reputable financial institutions’ securities underwriter, you must prepare an analysis of the financial condition of a broad range of financial insitituions of various sizes, localities and product lines. Using the “probability of insolvency” model discussed in class where E(ROA) is expected value of after-tax earnings on assets, σ2 is the various of ROA, and K/A is the firm’s equity capital plus contingency and loan loss reserves to total assets, discuss, based upon your economic assumptions, what financial ratios you might use to assess the level and expected future course, over the next few years, of each of these indicators of financial soundness. Clearly state your assumptions about general economic growth and cyclical movements, interest rates, ad potential developments in individual industries and regional economies.