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A banks assets consist of : Cash: 3 million Loans: 15 million Securities: 6 million Fixed Assets: 3 million In addition, the Owners Capital is

A banks assets consist of :

Cash: 3 million Loans: 15 million Securities: 6 million Fixed Assets: 3 million

In addition, the Owners Capital is 2.5 million

Calculate the equity capital ratio. If $2 million in bad loans were removed from the banks assets, show how the equity capital ratio would change.

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