You are provided with the following information: a bank has a net income after taxes of...
You are provided with the following information: a bank has a net income after taxes of $3.5 million; it has assets of $150 million; and bank capital of $12.5 million.
What is the bank's leverage?
(please show the formula that's being used, thank you)
Homework Answers
|
Leverage ratio = Total capital/Total assets *100 |
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Bank Capital (A) |
12.5 million |
|
|
Bank total assets (B) |
150 million |
|
|
Leverage ratio (C=A/B) |
8.33% |
|
|
Ans |
Bank leverage ratio = 8.33% |
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