Bank A has the following balance sheet: Assets Reserves $50 million Securities $50 million Loans $100 million Bank B has the following balance sheet: Assets Reserves $50 million Securities $50 million Loans $150 million Liabilities Deposits $170 million Bank capital $30 million Liabilities Deposits $180 million Bank capital $20 million 1. (5pts.) Both banks earn $5 million as an annual after-tax profit. Calculate ROA (re ROE (return on equity) for both banks. 2. (5pts.) If $ 25 million loans default, how should the bank balance sheet change? 3. (6pts.) From parts 1 and 2, explain the trade-off of holding low capital.