How Would a Bank's Ability to Control Its Burden Ratio

question 35

Short Answer

How would a bank's ability to control its burden ratio impact its return on equity?

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Definitions:

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily related to its market value.

Fair Value

The estimated price at which an asset or liability could be traded in a fair transaction between willing parties.

Stock Issuance Costs

Expenses incurred by a company to register and issue shares of stock, such as legal, accounting, and printing costs.