Business
Business, 29.07.2019 13:30, IBillRandomz2958

Suppose that as the manager of the first national bank, you have to make decisions about the appropriate amount of bank capital. looking at the balance sheet of the bank, which like the high capital bank has a ratio of bank capital to assets of 10% ($10 million of capital and $100 million of assets), you are concerned that the large amount of bank capital is causing the return on equity to be too low. you conclude that the bank has a capital surplus and should increase the equity multiplier to increase the return on equity. what should you do?

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Suppose that as the manager of the first national bank, you have to make decisions about the appropr...

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