Which of the following is an indicator of Leverage of the banks? Select one: a. Equity...

Which of the following is an indicator of Leverage of the banks? Select one:

a. Equity multiplier

b. Earning per share

c. Return on assets

d. Return on equity capital

Solutions

Expert Solution

a) Equity Multiplier

Leverage of banks is related to leverage ratio and leverage ratio is equity multiplier.

So Equity Multiplier is an indicator of leverage of banks.

jeff jeffy answered 2 years ago

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