Recall that leverage is the total assets to equity ratio. This is given by the expression
L=EquityAssets
But from the accounting equation: Assets = Total Equities + Total Liabilities
⇒Assets=759+104=863⇒L=104863=8.3
Q.2829 Let a balance sheet for an institution be given such that the liabilities side is 759 in debts and 104 equity shares. Calculate the total leverage. | Financial Risk Manager Part 2 Quiz - LeetQuiz
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Q.2829 Let a balance sheet for an institution be given such that the liabilities side is 759 in debts and 104 equity shares. Calculate the total leverage.
