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7. A bank has the following capital structure: Item $millions ___________________________________ Notes and debentures $13 Common Stock 52 Paid in Surplus 80 Retained Earnings 405
7. A bank has the following capital structure:
Item $millions
___________________________________
Notes and debentures $13
Common Stock 52
Paid in Surplus 80
Retained Earnings 405
Loan-loss reserve 70
Calculate its Tier 1 and Tier 2 capital.
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