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Suppose that Barco Commercial Bank (BCB), a hypothetical bank, has $200 million in total assets. BCB maintains its capital ratio at 8%throughout the year with
Suppose that Barco Commercial Bank (BCB), a hypothetical bank, has $200 million in total assets. BCB maintains its capital ratio at 8%throughout the year with a retention ratio of 50%. If the ROA of BCB is 1.30%, what is the required increase in dollar amount of external capital to support 13% growth in assets of BCB? Please write your answer rounded to two decimal million dollar, i.e., $325.257m=$325.26m. Please do not write any alphabet with the answer, i.e., $325.257m=325.26.
without using excel
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