Consider the following asset values and associated credit risk weights for Fourth Bank: $100 million in...
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Consider the following asset values and associated credit risk weights for Fourth Bank: $100 million in assets in the 0 percent risk-weight category, $200 million in assets in the 20 percent risk-weight category, $500 million in assets in the 50 percent risk-weight category, and $750 million in assets in the 100 percent risk-weight category. The bank does not have any off-balance-sheet business. Fourth Bank has $57 million in Tier 1 capital. What is this bank's Tier 1 risk-based capital ratio (assuming there is no market risk or operational risk)? Select one: a. 7.60 percent. 5.48 percent. 18.25 percent. O d. 3.68 percent. O b. C. Consider the following asset values and associated credit risk weights for Fourth Bank: $100 million in assets in the 0 percent risk-weight category, $200 million in assets in the 20 percent risk-weight category, $500 million in assets in the 50 percent risk-weight category, and $750 million in assets in the 100 percent risk-weight category. The bank does not have any off-balance-sheet business. Fourth Bank has $57 million in Tier 1 capital. What is this bank's Tier 1 risk-based capital ratio (assuming there is no market risk or operational risk)? Select one: a. 7.60 percent. 5.48 percent. 18.25 percent. O d. 3.68 percent. O b. C.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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