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A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital:                                                                CET1 =                  7%                                          Tier 1=                  7.50%                                    Tier 1+2=             9%                                          Under Basel 2, what is the maximum, it can pay out in dividends?                                                                                                                                                                                                                                a $0.00     b $400,000.00        c $800,000.00   d $1,200,000.00

A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital:                                                                CET1 =                  7%                                          Tier 1=                  7.50%                                    Tier 1+2=             9%                                          Under Basel 2, what is the maximum, it can pay out in dividends?                                                                                                                                                                                                                                a $0.00     b $400,000.00        c $800,000.00   d $1,200,000.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A bank has estimated its net income for 2020 is $2,000,000. It has also estimated the following ratios of its capital:                                                               

CET1 =                  7%                                         
Tier 1=                  7.50%                                   
Tier 1+2=             9%                                         

Under Basel 2, what is the maximum, it can pay out in dividends?                                                                                                                                                                                                                             

  a

$0.00

 
  b

$400,000.00

    
  c

$800,000.00
  d

$1,200,000.00    

 
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