Question
What is the difference in in the equity multiplier between bank A and bank B, each with ROA of 1.5%, but bank A has equity-to-asset
What is the difference in in the equity multiplier between bank A and bank B, each with ROA of 1.5%, but bank A has equity-to-asset ratio of 6%, while bank B has an equity-to asset-ratio of 10%?
| a. | 8.3 | |
| b. | 10.0 | |
| c. | 2.5 | |
| d. | 6.7 | |
| e. | none of the above |
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Principles Of Managerial Finance
Authors: Lawrence J Gitman, Chad J Zutter
7th Edition
0133546403, 9780133546408
