f. ABC Bank has the following balance sheet (in millions) and has no off-balance-sheet exposure. Assets Liabilities and Equity Cash $20 Deposits $960 Treasury bills 40 Subordinated debt 25 Residential mortgages Common stock 45 Business loans 430 Retained earnings 40 Total assets $1,090 Total liabilities and equity $1,090 Total Risk Weighted Assets are $730. i) What is the Tier 1 risk-based capital ratio? ii) What is the Capital Adequacy Ratio (CAR)? iii) What is the Tier 1 leverage ratio?

f. ABC Bank has the following balance sheet (in millions) and has no off-balance-sheet exposure. Assets Liabilities and Equity Cash $20 Deposits $960 Treasury bills 40 Subordinated debt 25 Residential mortgages Common stock 45 Business loans 430 Retained earnings 40 Total assets $1,090 Total liabilities and equity $1,090 Total Risk Weighted Assets are $730. i) What is the Tier 1 risk-based capital ratio? ii) What is the Capital Adequacy Ratio (CAR)? iii) What is the Tier 1 leverage ratio?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

The following ratios gauge a bank’s leverage EXCEPT* Bills Payable to Capital Accounts Capital Accounts to Loans Debt to Equity Deposits to Capital Accounts Net Income to Total Equity
Describe the importance of Capital Adequacy The Balance Sheet of a bank shows following figures with risk weights in brackets: Cash: Rs 50 crores (Risk weight 0%), SSI advances with CGF Guarantee: Rs 500 crores (Risk weight 0%), Government Approved Securities: Rs 200 crores (Risk weight 2.50%), Loans to Staff: Rs 100 crores (Risk weight 20%), Mortgage Loan: Rs 4500 crores (Risk weight 50%), Retail Loans with limit up to Rs. 5 crores: Rs 12000 crores (Risk weight 75%), Other Loan: Rs 15000 crores (Risk weight 100%), Exposure to Capital Market: Rs 200 crores (Risk weight 125%) and Capital Rs 3300 crores. Find out: Total amount of Risk Weighted Asset and Capital Adequacy Ratio.
Question No. 1: Given Data Net interest income 810 Provision for loan loss 90 Total non-interest expenses 840 3060 Total interest income A Income taxes 60 Increase in bank's undivided profits 84 Total non-interest income 360 Securities gain (losses) (30) Extraordinary items (15) Using the above data please calculate the following items: | No. Item 1 Net Income after Taxes 2 Total Operating Revenues Total Operating Expenses to Dividends Paid Common Stockholders. Net Noninterest Income 3 4 $ Solve for Net Income After Taxes Total Interest Income Total Int. Expenses Provision Loan Loss Noninterest Income Noninterest expenses Pretax Securities losses Pretax net Tax Before Extraordinary Extraordinary Net Income after Taxes Calculation I
6
In the Merton model of corporate equity which is based on the Black Scholes formula, what is the quantity (S0/KT)? Assume that interest rates are zero (r=0) so the time value of money can be ignored, therefore S0 = ST. (a) Debt-to-equity ratio. (b) Debt-to-assets ratio. (c) Assets-to-debt ratio. (d) Assets-to-equity ratio. (e) Equity-to-assets rati
(1) Compute debt and equity ratio for the current year and one year ago. (2) Compute debt-to-equity ratio for the current year and one year ago. (3)Compute times interest eamed for the current year and one year ago. Please avoid solutions in an image format thank you
None
PLS I NEED NEW ANSWER. DO NOT COPY FROM THE NET First Philippine Holdings Corporation Liquidity Ratio 1. Discussion and analysis of Liquidity Ratio. 2. Overview of the business performance over the past three years and discussion of the analysis of liquidity.
TRUE OR FALSE: 1.A Financial Statement is not necessary for corporations over $10M in annual revenue. 2.It is possible to determine the future value (FV) of an investment deposit into fixed income security. 3. Investing in stock is a form of fixed income investing.
If a bank has the following ratios, it can pay up to of its earnings as dividends. Tier 1 leverage = 4.7% Tier 1 common equity risk-based = 7.2% %3D Tier 1 risk-based 8.3% Total capital risk-based = 11%
Consider a bank with return on assets of .15 or 15%. The equity multiplier for this bank is 1.333. What is the return on equity of this bank?
Q2. From the following particulars, you are required to calculate: (c) Stock Turnover Ratio (f) Debtor's Turnover Ratio (a) Current Ratio (b) Gross Profit Ratio (d) Debt Equity Ratio (e) Proprietary Ratio Rs Rs Particulars 74,40,000 Inventories 15.00,000 Bank Overdraft 7,44,000 Sundry Debtors 6,00,000 Sundry Creditors 16,50,000 Short-Term Investments 5,00.000 Cash Balances Particulars 9,10.000 2.00.000 12,40,000 Annual Sales Paid up Capital Gross Profit Reserve & Surplus 12.00,000 1.60,000 Fixed Assets 7% Debentures 40,000

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS