a) Tim Bank has the following Balance Sheet (in millions) and has no off-balance-sheet activities. Suppose the goodwill is $0. i) The risk weight for residential mortgages (category 1 ; loan-to-value ratio =90% ) is 75%. Calculate the risk-adjusted assets. Show the workings when necessary. [2 marks] ii) Calculate the CET1 risk-based ratio, Tier I risk-based capital ratio, total risk-based capital ratio and leverage ratio. Show the workings when necessary. [8 marks] iii) Suppose Tim Bank receives additional $400,000 in deposits and invests them in Treasury bills, what is the effect on the CET1 risk-based ratio? Show the workings when necessary. [2 marks] iv) Suppose Tim Bank repurchases $2.1 million of common stock with cash, what is the effect on the risk-weighted assets? Show the workings when necessary. [2 marks] a) Tim Bank has the following Balance Sheet (in millions) and has no off-balance-sheet activities. Suppose the goodwill is $0. i) The risk weight for residential mortgages (category 1 ; loan-to-value ratio =90% ) is 75%. Calculate the risk-adjusted assets. Show the workings when necessary. [2 marks] ii) Calculate the CET1 risk-based ratio, Tier I risk-based capital ratio, total risk-based capital ratio and leverage ratio. Show the workings when necessary. [8 marks] iii) Suppose Tim Bank receives additional $400,000 in deposits and invests them in Treasury bills, what is the effect on the CET1 risk-based ratio? Show the workings when necessary. [2 marks] iv) Suppose Tim Bank repurchases $2.1 million of common stock with cash, what is the effect on the risk-weighted assets? Show the workings when necessary. [2 marks]