Investment Bank ABC Inc reports the following on its Income Statement and Balance Sheet in 2020

Income Statement (at the end of 2020)

Revenue: 5000

Expenses (COGS): 4200

Expenses (SGA): 200

EBITDA: 600

Preferred Dividends Paid: 50

Net Income: 400

Common Dividends Paid: 150

Retained Earnings: 250

Average Shares Outstanding: 1000

Average Market Price of Stock: 20

Balance Sheet (at the Beginning of 2020)

Assets:

Short Term: 10,000 (including Cash=1000)

Long Term: 8000

Goodwill: 2000

Total Assets: 20,000

Debt: 14,750

Preferred Equity: 1250

Common Equity: 4000

Calculate at the end of 2020 assuming no new debt or preferred equity stock was issued during 2020):

a) Return on Equity

b) Enterprise Value (EV) and EV/BV, where BV=Book Value of Equity

c) CET-1 Capital and Tier-1 Capital

d) If RWA=18,000 then CET-1 Capital Ratio and Tier-1 Capital Ratio

e) If the threshold for this bank to engage in committed underwriting is a minimum Tier-1 Cap Ratio of 12%, is ABC Inc meeting this threshold at the end of 2020?