What is the new total capital ratio

Assignment Help Finance Basics
Reference no: EM132585394

A bank has $20 million in assets, with risk-adjusted assets of $10 million. Tier 1 capital is $500,000 and Tier II capital is $400,000. If the bank issues $320,000 in common stock and uses it to issue mortgage loans (risk-weight 50%), what is the new total capital ratio?

Reference no: EM132585394

Questions Cloud

Discussion around any functional component of business : You may frame your discussion around any functional component of business, and in any context; problem-solving, management, leadership, organizational behavior,
Advise joan of the possible flaw in statement : Advise Joan of the possible flaw in her statement. Joan is employed to Greendale, a small business in which she does all the accounting for the business
Recent wave of mortgage defaults and foreclosures : The United States has still not recovered from the recent wave of mortgage defaults and foreclosures.
Prepare the march income statement for digital vibe : Prepare the March income statement for Digital Vibe Manufacturing Company. Refer to the Amount Descriptions list provided for the exact wording
What is the new total capital ratio : If the bank issues $320,000 in common stock and uses it to issue mortgage loans (risk-weight 50%), what is the new total capital ratio?
What is the maximum loss it permits to affect : If a bank's concentration limit is 0.35 (i.e., 35 percent of capital), and its expected recovery from defaulted loans is 0.6
Degree of systematic default risk and benefit : A regression of sectoral loan losses against total loans losses, both measured as a percentage of loans, of a bank results
What linked accounts are needed to set up inventory : Pass the journal entry, Inventory costing $ 450 including a HST paid @ 12 % wasb sold for S 600 including HST @ 12% All entry recorded in cash.
BE936 Accounting Project Assignment : BE936 Accounting Project Assignment Help and Solution, University of Excess - Assessment Writing Service - What is the Accounting Project

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd