Reference no: EM133002623
Question - At the beginning of 2020, Atlantis Bank had risk weighted assets of $20 million, Total Tier 1 capital of $1.4 million and Total Tier 2 capital of $1 million. Included in Tier 1 and Tier 2 capital was a hybrid security with a total value of $100,000. Regulations allow 25% of this to be classified as Tier 1 with the remainder classified as Tier 2.
Transactions during 2020:
-February: Cash dividends of $100,000 were paid from retained earnings.
-March: The Bank raised $500,000 from an issue of ordinary common shares.
-June: The Bank invested $1 million in new offices.
-September: $5 million in fully secured (ie. fully insured) housing loans (LVR is 92%) were repaid. $2 million was invested in unsecured housing loans (LVR is 105%) and the remaining $3 million invested in Australian Government Bonds.
End of year: At the end of the year APRA reclassified hybrid securities so that only 15% could be classified as Tier 1 and the remainder had to be classified as Tier 2.
Using the 'Base Case' data and the March transaction only [transaction (b) above], what is Atlantis Bank's Total Tier 1 capital adequacy ratio?
|
Determine the dividends per share on each class of stock
: During its first four years of operations, the following amounts were distributed as dividends: first year, $33,000; Determine the dividends per share
|
|
The writer problem falls within which classification
: The writer's problem falls within which classification? A freelance writer must choose how to spend her time working on several different types of projects.
|
|
What role do standard costs play
: What role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor
|
|
How do estimate what the net present value is
: What the net present value is? An investment of $83 generates after-tax cash flows of $44.00 in Year 1, $74.00 in Year 2, and $125.00 in Year 3.
|
|
What is Atlantis Bank Total Tier one capital adequacy ratio
: Using the 'Base Case' data and the March transaction only [transaction (b) above], what is Atlantis Bank's Total Tier 1 capital adequacy ratio
|
|
Determine what payback period for project for mckenna sport
: Find What is the payback period for this project? McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million.
|
|
Determine the amount of manufacturing overhead cost
: Luthan Company uses a plantwide predetermined overhead rate of $23.10 per direct labor-hour. Determine the amount of manufacturing overhead cost
|
|
Find what is the npv of the project for monroe inc
: What is the NPV of the project? Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project.
|
|
What is the yield to maturity on the bond today
: A year later, the bond price is $1,050. Face value of the bond is $1,000. What is the yield to maturity on the bond today
|