Explanation:
Leverage should be calculated as (all $ amounts in million):
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Q.2286 Baraba bank is in the process of calculating its leverage. An extract of its balance sheet is as follows:
Assets: $50 million
Equity: $20 million
Deposits: $30 million
What is the level of leverage?
A
1
B
2.5
C
1.67
D
1.5