Question
A bank has the following capital structure: Item$millions Notes anddebentures$40 Common Stock (par value)120 Paid in Surplus200 Undivided profits (Retained earnings)800 Loan-loss reserve100 (a) Calculate
A bank has the following capital structure:
Item$millions
Notes anddebentures$40
Common Stock (par value)120
Paid in Surplus200
Undivided profits (Retained earnings)800
Loan-loss reserve100
(a) Calculate its Tier 1 and Tier 2 capital respectively.
(b) ) If the bank's common stock is selling for $100 per share and there are 5 million shares outstanding, what is the bank's market-to-book ratio
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
