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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
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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