n 2017. Blue Bank announced a Returm on Equity (ROE) of 15% and a Returm on Assets (ROA) of 2%. The bank had total equity of £200 million at year-end 2017. Calculate the 2017 values of total assets, total debt and the leverage ratio (equity multiplier) for Blue Bank

n 2017. Blue Bank announced a Returm on Equity (ROE) of 15% and a Returm on Assets (ROA) of 2%. The bank had total equity of £200 million at year-end 2017. Calculate the 2017 values of total assets, total debt and the leverage ratio (equity multiplier) for Blue Bank

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 23MCQ

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

In 2017. Blue Bank announced a Returm on Equity (ROE) of 15% and a Returm on
Assets (ROA) of 2%. The bank had total equity of £200 million at year-end 2017. Calculate
the 2017 values of total assets, total debt and the leverage ratio (equity multiplier) for Blue
Bank

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