1. A securities firm has the following balance sheet (in millions):

Assets Liabilities and Equity Cash $ 40 Five-day commercial paper $ 20 Debt securities 300 Bonds 550 Equity securities 500 Debentures 300 Other assets 60 Equity 30 Total assets $900 Total liabilities and equity $900 The debt securities have a coupon rate of 6 percent, 20 years remaining until maturity, and trade at a yield of 8 percent. The equity securities have a market value equal to book value, and the other assets represent building and equipment that was recently appraised at $80 million. The company has 1 million shares of stock outstanding and its price is $35 per share. Is this company in compliance with SEC Rule 15C 3–1?