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 company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows:  Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Net Present value given :       Time Project A Project B   Project A Project B 0 -300,000 -405,000 1.0000   (300,000.00)   (405,000.00) 1 -387,000 134,000 0.9091   (351,818.18)     121,818.18 2 -193,000 134,000 0.8264   (159,504.13)     110,743.80 3 -100,000 134,000 0.7513     (75,131.48)     100,676.18 4 600,000 134,000 0.6830    409,808.07       91,523.80 5 600,000 134,000 0.6209    372,552.79       83,203.46 6 850,000 134,000 0.5645    479,802.84       75,639.51 7 -180,000 0 0.5132…

3) Suppose there is a 10% reserve requirement, and the bank has the following Balance Sheet Assets Reserves Loans Securities Liabilities 55M Deposits 250M Bank Capital 45M 350M 50M Now, let's suppose there is a deposit outflow of $60 million. If the bank only finances its reserve shortages by borrowing from the Federal Reserve, show the bank's balance sheet after the deposit outflow and receiving the loan from the Fed.

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