$6.$ The last request from the head of the division to you is based on the following year$-$end balance sheet of Unibank $($in millions of dollars$)$:

Assets $ Liabilities and equity $

Cash $10$ Deposits $335$

Liquid assets $50$ Interbank loan $5$

Loans $320$ Equity $40$

Total assets $380$ Total liabilities and equity $380$

The loans are primarily fixed$-$rate, medium$-$term loans, while the deposits are either short$-$term or variable$-$rate deposits. Rising interest rates have caused increases in loan defaults and, as a result, $4$ per cent of the loans are considered to be uncollectable and thus have no economic value. Half $(50$ per cent$)$ of these uncollectable loans will be charged off. Further, the increase in interest rates has caused a $3$ per cent decrease in the market value of the remaining loans.

a$.$ What is the impact on the balance sheet after the necessary adjustments are made according to book value accounting? $(3$ marks$)$

b$.$ What is the impact on the balance sheet after the necessary adjustments are made according to market value accounting? $(3$ marks$)$

c$.$ What is the new market to book value ratio if UniBank has $$1$ million shares outstanding? $(1$ mark$)$