The following data are extracted from Bank

Capital at start of year $3,780 million

Assets at start of year $54,100 million

Asset growth rate 10% per annum

Return on assets 1.2% per annum

Dividend payout ratio 30%

Target capital ratio 7%;

Use the above information to answer the following question.

The internal capital generation rate for Monash bank is:

A.

8.57%

B.

7.5%

C.

7%

D.

7.71%

E.

None of the listed options is correct.