A bank''s assets consist, A bank's assets consist of:

A bank''s assets consist

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Reference no: EM13835159

A bank's assets consist of:

Cash: $1.5 million

Loans: $10 million

Securities: $4.5 million

Fixed assets: $2 million

In addition, the bank's owners' capital is $1.5 million

a. Calculate the equity capital ratio.

b. If $2 million in bad loans were removed from the bank's assets, show how the equity capital ratio would change.

The capital would be $1.5

but would the assets be cash+securites+fixed assets

and liabilieties be loans?

Reference no: EM13835159

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