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You have been given the following limited information about a different bank, UWM National Bank. Please calculate the equity ratio in percentage terms to the
You have been given the following limited information about a different bank, UWM National Bank. Please calculate the equity ratio in percentage terms to the second decimal place, after there is a $5 million loan that is declared worthless. Assume that this does not impact the allowance for loan and lease losses and that the bank operates in an area that has no taxes (Nirvana, right?)
Balance Sheet Category | Balance Sheet Value ($s in millions) |
Total Gross Loans | $500 |
Total Investment Securities | $150 |
Total Allowance for Loan and Lease Losses | -$5 |
Cash and Reserves | $100 |
Total Assets | $750 |
Deposits | $550 |
Equity | $45 |
Total Intangibles | $10 |
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