Single choice8)A bank's capital ratio is calculated by which of the following formulas?Risk-weighted assets/bank capitalBank capital/ total assetsBank capital/risk-weighted assets

The leverage ratio of a commercial bank is the ratio between:Question 1Answera.Reserves and Depositsb.Assets and liabilitiesc.Assets and reserve d.Assets and net capital

If a bank’s assets are 180, its liabilities are 120 and its capital is 60, then its leverage ratio is Answer and its capital ratio is Answer.

Which of the following is the formula to calculate cost of capital?*Total assets/Net debt x Cost of debt + Total assets/Equity x Cost of equityNet debt/Equity x Cost of debt + Equity/Net debt x Cost of equityNet debt x Cost of debt + Equity x Cost of equityNet debt/Total assets x Cost of debt + Equity/Total assets x Cost of equity

Which financial metric indicates the proportion of equity and debt in a company's capital structure?a.Earnings Per Share (EPS)b.Debt-to-Equity Ratioc.Return on Investment (ROI)d.Operating Leverage

Which factor is NOT considered when determining the optimum capital structure?a.Business riskb.Financial riskc.Market riskd.Political risk