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Question 46 Not yet answered Points out of 3.00 Flag question On the balance sheet in 2006, Twin Oaks Valley Bank has total assets of

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Question 46 Not yet answered Points out of 3.00 Flag question On the balance sheet in 2006, Twin Oaks Valley Bank has total assets of $300 million, which include cash of $15 million, investment securities of $60 million, and loan portfolio of $150 million. In the loan portfolio, $75 million were real estate loans. The bank has equity of $24 million. Since then, the bank has incurred a 24% net charge off on the real estate loans due to housing market collapse. Total assets remain the same value at $300 million. If Twin Oaks Valley Bank is asked by FDIC to bring its leverage ratio to Zone 2 (adequately capitalized), which of the following actions alone can fulfill FDIC's request? I. Inject equity capital of $4 million. II. Inject equity capital of $6 million. III. Inject equity capital of $8 million. IV. Sell off $90 million of loans and investment securities V. Sell off $120 million of loans and investment securities VI. Sell off $160 million of loans and investment securities Select one: ime left o:45:29 a VI d MacBook Air 80 F3 49 7 F2 F4 FS * @ 8 A A $ 4 % 5 & 7 1 a 2 3 6 W E R T Y U S D F G H N C V BN

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