Calculate the equity capital ration

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Reference no: EM13849641

A bank's assets consist of:

a. Cash: 3 million

b. Loans: 15 million

c. securities: 6 million

d. Fixed assets: 3 million

in addition, owner's capital is 2.5 million

a) Calculate the equity capital ration

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

Reference no: EM13849641

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