Refer to Table 13-28 Onshore Bank has $40 million in assets, with risk-weighted assets of $30 million Core Equity Tier 1 (CET1) capital is $1,500,000 additional Tier I capital is $560,000, and Tier II capital is $440,000. The current value of the CET1 tatio is 5 percent, the Tier I ratio is 6.87 percent, and the total capitat ratio is 8.33 percent Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions a. The bank repurchases $120.000 of common stock with cash b. The bank issues $4 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent c. The bank receives $520,000 in deposits and invests them in T-bills d. The bank issues $820,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating e. The bank issues $3 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds 1. Homeowners pay back $6 million of mortgages with toan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMS Required A Required B Required a Required D Required E Required F The bank issues $4 million of CDs and uses the proceeds to issue category 1 mortgage percent. (Round your percentage answers to 2 decimal places. (e.g.) 32.16)) CET1 ratio % Tier 1 ratio % Total capital ratio % DIA Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required F Required E The bank receives $520,000 in deposits and invests them in T-bills. (Round your percentage answe (e.9., 32.16)) % CET1 ratio Tier I ratio Total capital ratio % Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F The bank issues $820,000 in common stock and lends it to help finance a new shopping mall. The rating. (Round your percentage answers to 2 decimal places. (e.g., 32.16)) CET1 ratio Tier I ratio Total capital ratio % % % new ATMs. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F The bank issues $3 million in nonqualifying perpetual preferred stock and purchases general obliga (Round your percentage answers to 2 decimal places. (e.g., 32.16) CET1 ratio Tier I ratio Total capital ratio *222 ces Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Required E Required F Homeowners pay back $6 million of mortgages with loan-to-value ratios of 40 percent and the bank new ATMs. (Round your percentage answers to 2 decimal places. (e.g., 32,16)) % CET1 ratio Tier I ratio Total capital ratio %
