1. A bank currently has equity capital of 8.7% of total assets and a dividend payout ratio of 45%. Assets are expected to grow at 9%. What is the required ROA to support the growth in assets and an equity capital of 8.7%?

2. LBJ Bank has equity capital of 9.3% of total assets. The bank forecasts a net income of $34.0 million on total assets of $2,960 million. The bank wants to maintain its current dividend payout ratio of 54 % and equity capital of 9.3%. How much new equity capital must the bank issue to support a growth rate of 12.0% in assets? Please give your answer both as a percent of total assets and in dollars.