Victory Bank reports an EM (equity multiplier) for 30 while Batovi Bank reports an EM equal...

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Victory Bank reports an EM (equity multiplier) for 30 while Batovi Bank reports an EM equal...

Victory Bank reports an EM (equity multiplier) for 30 while Batovi Bank reports an EM equal to 18. The equity capital as a percentage of assets for Victory Bank is??? and Batovi Bank

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Answer 1

Answer #1

Equity multiplier = Assets/ Equity

Victory Bank

equity capital as a percentage of assets = 1/EM = 1/30 = 0.0333 = 3.33%

Batovi Bank

equity capital as a percentage of assets= 1/EM = 1/18 = 0.0556 = 5.56%

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Answer 2

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Victory Bank reports an EM (equity multiplier) for 30 while Batovi Bank reports an EM equal...

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