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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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