a$.$ Assume $$0\mathrm{.}25$ billion in retained earnings over the coming period, and no other changes to Ultimo$$s

balance sheet other than outlined. If Ultimo Bank achieves the objectives set by the head of the credit

department, will it be compliant with capital regulation on $31$ March $2025?$ Interpret your findings.

Hint: you only need to consider the Tier $1$ Capital Ratio.

b$.$ In addition to capital management, which other dimensions does Ultimo need to consider when

budgeting these changes? Consider $2($and only $2)$ other dimensions, and detail carefully.