Assume the loan exposure is $16,000,000, the spread is 1.5%, fees are 0.25%, costs are $95,000, Loan duration is 6 years and the change in credit risk premium is 8%. '

a. Calculate the Risk Adjusted Return on Capital. 2 marks. 

b. In your own words, identify and explain two alternate methods (excluding Altman Z Score) that can be used to assess.