Question: calculation about equity multiplier, ROE decomposition, Capitalisation ratio Table 2 reports select financial statement data for years between 2005 and 2020. Table 2: Bangor Bank,

calculation about equity multiplier, ROE decomposition, Capitalisation ratio

calculation about equity multiplier, ROE
Table 2 reports select financial statement data for years between 2005 and 2020. Table 2: Bangor Bank, Em mum-Luz: -ma - m Required: [v] Calculate the equity multiplier [leverage]. [4 marks] [vi] Compute the bank's return on equity using ROE decomposition. [4 marks] [vii] Calculate the capitalisation ratio to one decimal place. [4 marks] [viii] Describe the relationships you observe between ROE, RCA and leverage. Discuss the relationship between bank protability and solvency. What do you conclude about Lemon Bank's risk attitude? [8 marks]

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