Various capital accounts of a bank are as follows:
Common Stock (Par) $4.88 million
Allowance for Loan Loss $7.95 million
Undivided Profit $14.79 million
Intermediate Term Preferred Stock $0.97 million
Subordinated Debt Capital $5.14 million
Surplus $9.93 million
Suppose that the bank has a quarter of its assets in each of the four risk categories used to compute risk-weighted assets. The total assets are $1097 million.
What is the bank’s Tier 1 capital in percent of risk-weighted assets, to the nearest 0.01%? (E.g., if your answer is 5.753%, record it as 5.75.)