The following information applies to Mars Bank:

• Assets at start of the planning period $10,500 million
• Capital at start of the planning period $1,150 million
• Dividend payout ratio (per annum) 35%
• Asset growth rate (per annum) 12%
• Return on assets (per annum) 1.1%

(i) Calculate the bank's projected capital ratio (show all workings). (3 marks)

(ii) If the target capital ratio is 12%, what is the capital shortage or excess in dollar terms (show all workings)? (3 marks)