question archive The equity multiplier of NCB Bank, a hypothetical company, is 4
The equity multiplier of NCB Bank, a hypothetical company, is 4
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The equity multiplier of NCB Bank, a hypothetical company, is 4.2. What will be its total common equity (TCE) ratio if bank holds no intangible assets?
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Formula for calculating Equity multiplier = Total assets / Common shareholders equity
Total common equity = 1-1/Equity multiplier
= 1-1/4.2
= 1-0.238
= 0.762
