Reference no: EM13849653
Let’s assume that you have been asked to calculate risk-based capital ratios for a bank with the following accounts.
Cash 7 million
Government Securities: 9 million
Mortgage loans 25 million
Other loans 55 million
Fixed assets 8 million
Intangible assets 5 million
Loan-loss reserves 4 million
Owners’ equity 6 million
Trust-preferred securities 3 million
Cash assets and government securities are not considered risky.
Loans secured by real estate have a 50% weighting factor.
All other loans have a 100 % weighting factor in term of riskiness.
Calculate the equity capital ratio.
Calculate the Tier 1 Ratio using risk-adjusted assets.
Calculate the Total Capital (Tier 1 and Tier 2) Ratio using risk-based assets.
|
Calculate an earnings growth rate
: How do we calculate an earnings growth rate? Please illustrate your calculation using an example you make up yourself and not one from the book or the internet.
|
|
Bank required by law to report to potential borrowers
: Tai Credit Corp. wants to earn an effective annual return on its consumer loans of 14.6 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?
|
|
Bonds outstanding with coupon rate
: Union Local School District has bonds outstanding with a coupon rate of 3.6 percent paid semiannually and 17 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par value of $5,000. What is the price of the bon..
|
|
How much the mean changes?
: how much the mean changes?
|
|
Calculate the tier ratio using risk-adjusted assets
: Let’s assume that you have been asked to calculate risk-based capital ratios for a bank with the following accounts. Calculate the equity capital ratio. Calculate the Tier 1 Ratio using risk-adjusted assets. Calculate the Total Capital (Tier 1 and Ti..
|
|
In what ways do we erode our own privacy online
: In what ways do we erode our own privacy online? In what ways do we erode our friends' privacy Online? What are some of the possible long-term consequences of eroding our own privacy or our friends' privacy online
|
|
Total liabilities and capital
: Broncs Bank has the following liabilities and equity categories: What would be the bank’s total liabilities and capital if owners’ capital were 75% the size of Other Liabilities? If Total Liabilities and Capital were 18 million what would be the size..
|
|
Find the probability
: Find the probability that fewer than two cars will pass in exactly two of three consecutive intervals.
|
|
Explosive growth of digital crime
: Explosive Growth of Digital Crime and Fighting Digital Crime" Please respond to the following: Identify at least two (2) factors that have led to the explosive growth of digital crime over the past a few decades
|