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Bank A: $200 in debt, $ 10 in total equity Bank B: $205 in debt, $ 5 in total equity Hint: Equity Multiplier = Total

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Bank A: $200 in debt, $ 10 in total equity Bank B: $205 in debt, $ 5 in total equity Hint: Equity Multiplier = Total assets/Equity = (Debt + Equity)/Equity 12. What is the Equity Multiplier of Bank A (0.5 points) a. 12 b. 21 c. 36 d. 42 13. Calculate the Equity Multiplier of Bank B (0.5 points) a. 12 b. 21 c. 36 d. 42 14. Which bank has a higher level of leverage (borrows more). (0.5 points) a. Bank A b. Bank B C. A and B has the same leverage level

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