Bank Capital

QUESTION 5B. BANK CAPITAL (7 MARKS) Use the following information to answer part (B) ONLY. The following information applies to Interstellar Bank $712 million $ 10,500 million Capital at start of the planning period Asset at start of the planning period Dividend payout ratio (per annum) Asset growth rate (per annum) Return on assets (per annum) 35% 12% 1.1% 6) Calculate the bank's projected capital ratio. (2 marks) (w) If the target capital ratio is 8%, what is the capital shortage or excess in dollar terms? (2 marks) C) Detail three (3) possible courses of action which can help the bank resolve the above shortage/excess