Onshore Bank has $20 million in assets with risk-weighted assets of $10 million.

CET1 capital is $500,000, additional Tier I capital is $50,000, and Tier II capital is $400,000. How will each of the following transactions affect the value of the CET1, Tier I, and total capital ratios? What will the new values of each ratio be?

a. The bank repurchases $100,000 of common stock with cash.

b. The bank issues $2 million of CDs and uses the proceeds to issue mortgage loans with loan-to-value ratio of 95 percent.

c. The bank receives $500,000 in deposits and invests them in T-bills.

d. The bank issues $800,000 in common stock and lends it to help finance a new shopping mall.

e. The bank issues $1 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds.

f. Homeowners pay back $4 million mortgage loans with loan-to-value ratio of 100 percent, and the bank uses the proceeds to build new ATMs.