Following Data Pertains to Castle State Bank

question 93

Multiple Choice

Following data pertains to Castle State Bank.

-What is the bank's equity multiplier?

• A)20.45 times
• B)18.33 times
• C)12.22 times
• D)7.33 times
• E)2.5 times

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the rate at which an asset's book value depreciates.

Salvage Value

The projected amount an asset is expected to yield when it is sold after its period of usability has ended.

Book Value

The value of an asset according to its balance sheet account balance, which accounts for the cost of the asset minus any depreciation, amortization, or impairment costs.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments.