The bank’s projected capital ratio is in line with the capital target.

The bank is projected to have a capital shortage next period; it can meet its capital target by increasing the asset growth rate.

The bank is projected to have a capital shortage next period; it can meet its capital target by reducing the asset growth rate.

The bank is projected to have a capital excess next period; it can meet its capital target by increasing the asset growth rate.

Increase the dollar amount of commercial loans outstanding

Shift more bank assets into lower risk categories

Reduce the dividend payout ratio

Rebalance the asset portfolio to reflect greater equity support

Limit asset growth

Increase the bank's dividend payment.

Implement a dividend re-investment scheme.

None of the options.

Repurchase the bank's common stock on the open market.

Increase the bank's growth rate by making additional commercial loans.

have a great deal of discretion in timing the write-downs of problem loans.

must invest in expensive computerised bookkeeping systems.

have an incentive to fully reflect problems in the asset portfolio as they become known.

must write down the value of their assets to fully reflect market values.

provide a permanent and unrestricted commitment of funds.

rank behind the claims of depositors and other creditors in the event of winding-up.

pay cumulative dividends to shareholders.

not impose any unavoidable servicing charge against earnings.

be freely available to absorb losses.

the regulatory value of capital.

the economic value of capital.

the weighted average cost of capital.

None of the above.

the accounting value of capital.

To increase a bank's return on equity.

To minimize the impact shareholders have on management decisions.

To increase depositor protection.

To increase the influence of bank regulators.

Paid-up ordinary shares

Cumulative preference shares

Perpetual subordinated notes

Non-cumulative preferred stock