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What is the annual return-on-equity

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Reference no: EM132753234

Problem 1: Suppose an investment bank has $900 billion in assets under management and a leverage ratio (Assets / Equity) of 30 to 1. If the bank earns (annually) a 5% return on its assets and pays 2% interest on its debt and the tax rate is zero, what is the (annual) return-on-equity?

Reference no: EM132753234

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