R
Risc1
Member
Hi,
question X1.3ii)b indicates that a life company purchased shares in a company which immediately afterwards had a rights issue. The life company did not participate in the rights issue, but the memo adjusts the purchase price for the rights issue. Is this correct?
Further on in the same question it indicates that the life company would pay CGT at a rate of 22% (after indexation allocation). I thought the rate was 20%?
In question X3.3v it asks you to calculate the Basel I capital ratio. The bank has share capital of 40 and sub-ordinated debt of 100. The memo indicates that tier 1 capital is 40 and that tier 2 capital is min(40,100). Why is the min function used for tier 2 capital? Isn't tier 2 capital = 100?
I would appreciate any help.
Thank you
question X1.3ii)b indicates that a life company purchased shares in a company which immediately afterwards had a rights issue. The life company did not participate in the rights issue, but the memo adjusts the purchase price for the rights issue. Is this correct?
Further on in the same question it indicates that the life company would pay CGT at a rate of 22% (after indexation allocation). I thought the rate was 20%?
In question X3.3v it asks you to calculate the Basel I capital ratio. The bank has share capital of 40 and sub-ordinated debt of 100. The memo indicates that tier 1 capital is 40 and that tier 2 capital is min(40,100). Why is the min function used for tier 2 capital? Isn't tier 2 capital = 100?
I would appreciate any help.
Thank you