Imagine a bank initially with assets equal to $7.1B and Equity/Assets = 10.0%. The bank then incurred loan losses that led to a reduction of 3.0 percent on the value of its assets. You should assume that the bank's debt (mostly deposits) is safe. In response to this loss, the bank decided to deleverage its balance sheet to increase the ratio Equity/Assets to 9.0% (closer to its initial value). Specifically, the bank decided to sell assets and use the proceeds to repay part of its debt (you should assume that assets are sold at no loss). Calculate the percentage of the bank's assets that needs to be sold to achieve this objective. Activate Windows