Question
Suppose Bank A earns 2 percent on assets (ROA), while Bank B earns 2.5 percent (ROA). a) Estimate the return on equity (ROE) and equity
Suppose Bank A earns 2 percent on assets (ROA), while Bank B earns 2.5 percent (ROA).
a) Estimate the return on equity (ROE) and equity multiplier (EM) if Bank A's equity to asset ratio is 5%, and Bank B's equity ratio is 12%. Interpret the estimates for the ratios.
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The Infographic Guide To Personal Finance
Authors: Michele Cagan CPA, Elisabeth Lariviere
1st Edition
1507204663, 978-1507204665
