question archive 1) Regulated Lending Corp
Subject:FinancePrice: Bought3
1) Regulated Lending Corp., a depository institution regulated by the Fed, has the below segments in its loan portfolio. Its cost of funding is 2.00%. (All rates are per annum.) It has 30 billion in Tier 1 regulatory capital and must maintain an 8% Tier 1 capital ratio.
What is the return on regulatory capital for the A-rated quality loans if they have the proper amount of Tier 1 capital backing them? (State the answer in percentage points to the nearest 0.01, so 5.25% would be "5.25.)
2.Regulated Lending Corp., a depository institution regulated by the Fed, has the below segments in its loan portfolio. Its cost of funding is 2.00%. (All rates are per annum.) It has 30 billion in Tier 1 regulatory capital and must maintain an 8% Tier 1 capital ratio.
What is the bank's regulatory capital surplus? (A positive number indicates surplus, 0 indicates meets its regulatory capital requirements, and a negative number indicates it is undercapitalized.) Enter the answer in billions of dollars to the nearest tenth.