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show work Question 4 (5%): Balance sheets of Leverage Bank and Safe Bank are provided nearby. ROA (return on assets) is defined as Net Income

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Question 4 (5%): Balance sheets of Leverage Bank and Safe Bank are provided nearby. ROA (return on assets) is defined as Net Income / Total Assets, while ROE (return on equity) is defined as Net Income / Total Equity. Leverage Bank: Asset Liability/Equity Loan = $100 Deposit = $90 Capital = 10 Safe Bank: Asset Liability/Equity Loan = $100 Deposit = $10 Capital = 90 (a) Calculate both banks' ROE when ROA = 0.1. (b) Calculate their ROE again with ROA = 0.1. (c) Based on your findings in (a) and (b), which bank, in your opinion, should be regulated more? Why

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