Asked Oct 26, 2019

Some bank has assets totaling $1B. This bank has $25M in capital, and earned $10M last year. What is this bank’s earnings-to-capital ratio and equity multiplier?


Expert Answer

Step 1

The calculation of bank’s earnings...


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Bank earning Саptal Bank's earnings-to-capital ratio- 10,000, 000 25,000,000 0.4


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