Assets (Millions of $) - Begining of Period I 300 Risk-weight 0% 20% 50% 100% Cost of Assets per year 3.00% 3.50% 3.50% 400 800 900 Rate of Lending per year 7.50% 8.109% 8-50% 8.75% Asset ranking - End of the Period 12% of assets ranked 3B. 88% ranked 1 15% of assets ranked 4, 85% ranked 2 5% of assets ranked 5.95% ranked 1 20% of assets ranked 3A. 80% ranked 1 5096 Spercific Provisions Based on Asset Ranking 40% 140 1% Bank's Finacial Situation - Beginning of the Period Corporate Tax Bank's Tier 1 Capital (Million $) Operating Expenses (Million $) Income from Fees (Million $) Bank's Tier 2 Capital (Million $) General Provisions Bank's Total Capital (Million $) NOTE: Assets ranked 3B and higher do not accrue interest 10 150 5% 20% 1.25% 30% 80% 100% 180 1. To answer question 1, please use the financial information provided in the PDF file Problem Set 11 - Financial info. a) Calculate the bank's ratio of Tier 1 capital to risk-weighted assets. b) Calculate the bank's ratio of total capital to risk-weighted assets. c) Would you consider this bank to be well-capitalized? d) A bank that is not well capitalized have several options to improve its ratio of Tier 1 and total capital to risk-weighted assets. Discuss at least 2 options. e) Calculate the bank's net income after one year of operations using the accruals principle. f) Calculate the bank's ROA. g) Calculate the Bank's ROE. h) Calculate the Bank's EM and interpret what it means