Calculate the equity multiplier for each bank

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Bank L operates with an equity-to-asset ratio of 6%, while Bank S operates with a similar ratio of 10%. Calculate the equity multiplier for each bank if each bank earns 1.5% on assets. Equity multiplier (L) = 16.67x, equity multiplier (S) = 10x Equity multiplier (L) = 6x, equity multiplier (S) = 10x Equity multiplier (L) = 1.67x, equity multiplier (S) = 1x Equity multiplier (L) = 25x, equity multiplier (S) = 15x None of the above.

Reference no: EM131965794

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