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(a) Determine and write down in the space provided for each of the following whether the capital item is considered as part of Tier I
(a) Determine and write down in the space provided for each of the following whether the capital item is considered as part of Tier I or Tier II capital. (6 points)- ($ thousands) Tier I or Tier II t $60 80 25 Common stock (par value) Undivided profits Qualifying cumulative perpetual preferred stock with unpaid dividends- Intermediate term preferred stock Equity reserves Paid-in surplus 20 60 100 (b) Based on total tier I capital amount above, calculate the total risk weighted assets for the bank in order to meet the minimum Tier 1 capital ratio. (4 points)- (c) Based on your answer in part (b), calculate the minimum total dollar capital the bank must maintain to meet minimum total percent capital requirement by regulators? Show your work. (3 points) t (a) Determine and write down in the space provided for each of the following whether the capital item is considered as part of Tier I or Tier II capital. (6 points)- ($ thousands) Tier I or Tier II t $60 80 25 Common stock (par value) Undivided profits Qualifying cumulative perpetual preferred stock with unpaid dividends- Intermediate term preferred stock Equity reserves Paid-in surplus 20 60 100 (b) Based on total tier I capital amount above, calculate the total risk weighted assets for the bank in order to meet the minimum Tier 1 capital ratio. (4 points)- (c) Based on your answer in part (b), calculate the minimum total dollar capital the bank must maintain to meet minimum total percent capital requirement by regulators? Show your work. (3 points) t
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