For the following questions use the information in the followingtable.
-Given the information in Table 10.2,what is the approximate leverage ratio of this bank?
A)4.80
B)1.21
C)5.80
D)0.83
E)not enough information

Question

For the following questions use the information in the followingtable. 
-Given the information in Table 10.2,what is the approximate leverage ratio of this bank?
A)4.80 
B)1.21 
C)5.80 
D)0.83 
E)not enough information

Quizplus · Accepted Answer

The leverage ratio is calculated by dividing total assets by total equity. From Table 10.2, we can see that total assets are $100 million and total equity is $20.8 million. Therefore, the leverage ratio is $100 million / $20.8 million = 4.80.

For the Following Questions Use the Information in the Followingtable