Calculate the equity capital ratio

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Reference no: EM13808172

A bank’s assets consist of :

Cash: 3 million

Loans: 15 million

Securities: 6 million

Fixed Assets: 3 million

In addition, the Owners’ Capital is 2.5 million

Calculate the equity capital ratio.

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

Reference no: EM13808172

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