Please show all work on paper with pencil/pen

Question 5. Bank A has the following balance sheet: Assets Liabilities Reserves $50 million Deposits $170 million Securities $50 million Bank capital $30 million Loans $100 million Bank B has the following balance sheet: Assets Liabilities Reserves $50 million Deposits $130 million Securities $50 million Bank capital $20 million Loans $150 million 1. Both banks earn $5 million as an annual after-tax prot. Calculate ROA (return on asset) and ROE (return on equity) for both banks. 2. If $ 25 million loans default, how should the bank balance sheet change? 3. From parts 1 and 2, explain the tradeoff of holding low capital