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Can Someone explain to me how to solve this: How to solve it ?? Consider the simplied bank balance sheet shown below. Q Bank Balance

Can Someone explain to me how to solve this: How to solve it

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Consider the simplied bank balance sheet shown below. Q Bank Balance Sheet Q Assets 160 Liabilities 140 Capital 20 The leverage ratio for this bank is 8'. (Enter your response as an integer.) Suppose the expected rate of return on assets is 6% and the expected rate of return on liabilities is 5%. The expected profit of the bank is 2.6'. (Round your response to two decimal places.) Assume that the bank's owners have invested 20 oftheir own funds into the bank. The expected profit per unit of invested capital is 13'%. (Round your response to two decimal places.)

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