Capital in percent of risk-weighted assets

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Reference no: EM132057406

Various capital accounts of a bank are as follows:

Common Stock (Par) $4.91 million

Allowance for Loan Loss $8.04 million

Undivided Profit $15.07 million

Intermediate Term Preferred Stock $1.01 million

Subordinated Debt Capital $4.78 million

Surplus $9.91 million

Suppose that the bank has a quarter of its assets in each of the four risk categories used to compute risk-weighted assets. The total assets are $1135 million.

What is the bank’s Tier 1 capital in percent of risk-weighted assets, to the nearest 0.01%? (E.g., if your answer is 5.753%, record it as 5.75.)

Reference no: EM132057406

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