Use the Following Information for Questions

Multiple Choice

Use the following information for questions
A bank currently just meets its total capital requirements of 8%. The bank currently has a dividend payout ratio of 35%. Assets are expected to grow at 5%.
-If the bank expects its ROA to be .45% and the bank does not wish to change its dividend payout ratio from 35%, how much new equity capital (as a percent of total assets) must the bank issue to support the growth in assets?

A) 0.2925%
B) 2.935%
C) 0.1075%
D) 1.075%
E) 1.367%