Question
If a bank has the following ratios, it can pay up to _______ of its earnings as dividends. Tier 1 leverage = 4.5%, Tier 1
If a bank has the following ratios, it can pay up to _______ of its earnings as dividends.
Tier 1 leverage = 4.5%, Tier 1 common equity risk-weighted = 6.8%, Tier 1 risk-weighted = 8.4%, Total capital risk-weighted = 11%
A. 0%
B. 20%
C. 40%
D.60%
E. No payout limitation applies
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
