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If a Accounting institution has a leverage ratio of 0.08 and a return on capital of 1.2%, what is its return on equity? A) 0.096% B) 1.28% C) 15% D) 15.6%

If a Accounting institution has a leverage ratio of 0.08 and a return on capital of 1.2%, what is its return on equity? A) 0.096% B) 1.28% C) 15% D) 15.6%

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 19MCQ
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What is its return on equity? Question for accounting

If a Accounting institution has a leverage ratio of 0.08 and a return on capital of 1.2%, what is its return on equity? A) 0.096% B) 1.28% C) 15% D) 15.6%
Transcribed Image Text:If a Accounting institution has a leverage ratio of 0.08 and a return on capital of 1.2%, what is its return on equity? A) 0.096% B) 1.28% C) 15% D) 15.6%
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