Consider, for the last time, the following simple balance sheet.

Assets	$m	Liabilities	$m
Reserves	45	Deposits	300
Loans	250	Capital	20
Securities	25

Calculate the return on equity (ROE) for this bank (before the withdrawal) if its return on assets (ROA) is 1.2%. Your answer should include a value for the equity multiplier (EM). If the bank sourced an additional $10m in funds by borrowing and then lent this out in loans, what affect would this have on the ROE you just calculated? Explain your answer. (Hint: assets would increase.) (6 marks)