1. Use the Excel spreadsheet below, and your End of Round 3 balance sheet above, to calculate your Tier 1 Capitalization Ratio.

2. Assume that your bank is not obligated to pay taxes. Calculate your banks 1) ROA, 2) ROE, and 3) its ratio of bank assets to bank capital. These measures are presented in the text in Chapter 12s section entitled Bank Capital and Profitability. Show your calculations for each of these three measures in the space below (show algebraically with both the numerator and denominator made clear).

Total Equity Consumer Loans Residential Loans Balance Sheet: End of Round 3 $ $ C&I Tier 1 Capital =Equity/(Total Loans) $ $ 1,141, 801.28 4,000,000.00 4,000,000.00 4,000,000.00 9.515% Total Equity Consumer Loans Residential Loans Balance Sheet: End of Round 3 $ $ C&I Tier 1 Capital =Equity/(Total Loans) $ $ 1,141, 801.28 4,000,000.00 4,000,000.00 4,000,000.00 9.515%