an investor has bought a share of this stock the profit and loss for various stock p 612930

Let”s assume that you have been asked to calculate risk-based capital ratios for a bank with the following accounts:

Cash = $5 million

Government securities = $7 million

Mortgage loans = $30 million

Other loans = $50 million

Fixed assets = $10 million

Intangible assets = $4 million

Loan-loss reserves = $5 million

Owners” equity = $5 million

Trust-preferred securities = $3 million

Cash assets and government securities are not considered risky. Loans secured by real estate have a 50 percent weighting factor. All other loans have a 100 percent weighting factor in terms of riskiness.

1. Calculate the equity capital ratio.
2. Calculate the Tier 1 Ratio using risk-adjusted assets.
3. Calculate the Total Capital (Tier 1 plus Tier 2) Ratio using risk-adjusted assets.