Loan loss reserves fully cover unexpected loan losses

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Reference no: EM132008839

HAW Inc, may produce either $100,000 of net income or $130,000 of net income, depending on the economic, these profits are the result of annual sales of $1,200,000 or $1,800,000 . what is the degree of spreading Leverages?

a- 0.66

b-0,87

c-1.15

d-1.67

2. Loan loss reserves fully cover unexpected loan losses. True or False?

3. Bank capital requirements primarily protect shareholders. True or False?

Reference no: EM132008839

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