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What is the answer to this question? I have no idea.... The following table represents the balance sheet for Mom and Pop Bank. Suppose that

What is the answer to this question? I have no idea....

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The following table represents the balance sheet for Mom and Pop Bank. Suppose that 25% of borrowers from Mom and Pop Bank default on their loans, so the value of loans falls by 25%. What will be Mom and Pop Bank's new leverage ratio after this wave of defaults? 0000 0000 0000 $200 Securities $350 capital (W\"ers $300 equuty)

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