3. A bank has risk-weighted assets or $408 million and the following sources of regulatory capital (in $ millions): Allowance for Loan Loss $3.27 Common Stock (Par) $1.16 Intermediate-Term Preferred Stock $2.36 Perpetual Preferred Stock $2.98 Subordinated Debt $4.38 Surplus $8 Undivided Profit $19.41 What is the bank's ratio of Tier 1 capital to risk-weighted assets?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
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Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...
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3. A bank has risk-weighted assets or $408 million and the following sources of regulatory capital (in $ millions):
Allowance for Loan Loss $3.27
Common Stock (Par) $1.16
Intermediate-Term Preferred Stock $2.36
Perpetual Preferred Stock $2.98
Subordinated Debt $4.38
Surplus $8
Undivided Profit $19.41
What is the bank's ratio of Tier 1 capital to risk-weighted assets?
Transcribed Image Text:3. A bank has risk-weighted assets or $408 million and the following sources of regulatory capital (in $ millions): Allowance for Loan Loss $3.27 Common Stock (Par) $1.16 Intermediate-Term Preferred Stock $2.36 Perpetual Preferred Stock $2.98 Subordinated Debt $4.38 Surplus $8 Undivided Profit $19.41 What is the bank's ratio of Tier 1 capital to risk-weighted assets?
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