Question 6 (1 point) Consider the simple bank balance sheet shown below (amount in millions of $). Suppose, subsequently, depositors unexpectedly withdraw $80 million. Assume the bank is unable to borrow new funds and will have to liquidate all of its reserves to meet its payment obligation. For any uncovered amount, the bank will be forced to sell loans work $12 million in a fire sale. Please reconstruct the bank balance sheet after the withdrawal. What will be the new total assets and what will be the new equity value? Hint: Watch video for analysis. ASSETS Cash Loans Total assets 70 280 350 4) Total assets = LIABILITY & EQUITY Deposits Equity (net worth) Total debt & equity 1) Total assets = $268 million. Equity = $48 million 2) Total assets = $270 million. Equity = $48 million 3) Total assets = $270 million. Equity = $40 million $268 million. Equity = $38 million 300 50 350