A commercial bank has the following components in its capital account: Common stock ........... $110 10-year subordinated
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Common stock ........... $110
10-year subordinated debt ....... $ 25
Undivided profits .......... 160
Loan-loss reserves .......... 280
Perpetual preferred stock ..... 15
Equity reserves ........... 50
Surplus ............... 35
Limited-life preferred stock ....... 5
How much tier-one (or core) capital does this bank have? Tier-two capital?
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Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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