Question
1) Refer to the table attached for the Question. If Citigroup suffered a loss of $44 billion in its assets in the first quarter of
1) Refer to the table attached for the Question. If Citigroup suffered a loss of $44 billion in its assets in the first quarter of 2008, what would be its leverage ratio? Assume the risk weights for its lost asset were 100%. Enter your answer in percentage and keep two decimals.
Citigroup Dec 31, 2007.
Total Tier 1 Capital ($billion)89.226Total
Tier 2 Capital ($billion)44.895
Total Assets ($billion)2187.631
Risk Weighted Assets ($billion)1253.321
2)Refer to the table attached for the Question.If Citigroup suffered a loss of $45 billion in its assets in the first quarter of 2008, how much equity did Citigroup need to raise in order to keep its Tier 1 capital ratio at 6%? Enter your answers in billion dollars and keep two decimals.
CitigroupDec 31, 2007
Total Tier 1 Capital ($billion)89.226
Total Tier 2 Capital ($billion)44.895
Total Assets ($billion)2187.631
Risk Weighted Assets ($billion)1253.321
3) Refer to the table attached for the Question. If Citigroup suffered a loss of $46 billion in its assets in the first quarter of 2008, how much asset did Citigroup need to sell in order to keep its Tier 1 capital ratio at 6%? Assume that the risk weights for its to-be-sold assets were 100% and the sale value was the same as the value stated in its balance sheet at the end of 2007. Enter your answer in billion dollars and keep two decimals.
Citigroup Dec 31, 2007
Total Tier 1 Capital ($billion)89.226
Total Tier 2 Capital ($billion)44.895
Total Assets ($billion)2187.631
Risk Weighted Assets ($billion)1253.321
4)Refer to the table attached for the Question. If Citigroup suffered a loss of $46 billion in its assets in the first quarter of 2008, what would be its Tier 1 capital ratio? Assume the risk weights for its lost asset were 100%. Enter your answer in percentage and keep two decimals.
Citigroup Dec 31, 2007
Total Tier 1 Capital ($billion)89.226
Total Tier 2 Capital ($billion)44.895
Total Assets ($billion)2187.631
Risk Weighted Assets ($billion)1253.321
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Finite Math And Applied Calculus
Authors: Stefan Waner, Steven Costenoble
2nd Edition
0534366309, 9780534366308
