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A bank owns its building worth $25. It gave out $60 worth of loans. It also holds an XYZ company bond, worth $10. The bank
A bank owns its building worth $25. It gave out $60 worth of loans. It also holds an XYZ company bond, worth $10. The bank also issued 15 shares, $1 each to its shareholders. (a) Calculate the banks assets (show calculation). (b) Find the banks equity capital. (c) Given the principle of the balance sheet, what should be the size of the banks liabilities? (d) Calculate the banks leverage.
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