Suppose that Barco Commercial Bank (BCB), a hypothetical bank, has $200 million in total assets....
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Finance
Suppose that Barco Commercial Bank (BCB), a hypothetical bank, has $200 million in total assets. BCB maintains its capital ratio at 8% throughout the year with a retention ratio of 50%. If the ROA of BCB is 1.65%, what is the required increase in dollar amount of external capital to support 12% growth in assets of BCB?
Please write your answer rounded to two decimal million dollar, i.e., $325.257m=$325.26m.
Please do not write any alphabet with the answer, i.e., $325.257m=325.26.
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