management 2019s discussion and analysis 84 jpmorgan chase & co . / 2008 annual report tier 1 capital was $ 136.1 billion at december 31 , 2008 , compared with $ 88.7 billion at december 31 , 2007 , an increase of $ 47.4 billion . the following table presents the changes in tier 1 capital for the year ended december 31 , 2008. .

Table: tier 1capital december 31 2007 ( in millions ) $ 88746 net income 5605 issuance of cumulative perpetual preferred stock tou.s . treasury 23750 warrant issued to u.s . treasury in connection withissuance of preferred stock 1250 issuance of noncumulative perpetual preferred stock 7800 issuance of preferred stock 2013 conversion of bear stearnspreferred stock 352 net issuance of common stock 11485 net issuance of common stock under employee stock-basedcompensation plans 3317 net issuance of common stock in connection with thebear stearns merger 1198 dividends declared -6307 ( 6307 ) net issuance of qualifying trust preferred capital debtsecurities 2619 dva on structured debt and derivative liabilities -1475 ( 1475 ) goodwill and other nonqualifying intangibles ( net ofdeferred tax liabilities ) -1357 ( 1357 ) other -879 ( 879 ) increase in tier 1 capital 47358 tier 1 capital december 31 2008 $ 136104

additional information regarding the firm 2019s capital ratios and the federal regulatory capital standards to which it is subject , and the capital ratios for the firm 2019s significant banking subsidiaries at december 31 , 2008 and 2007 , are presented in note 30 on pages 212 2013213 of this annual report . capital purchase program pursuant to the capital purchase program , on october 28 , 2008 , the firm issued to the u.s . treasury , for total proceeds of $ 25.0 billion , ( i ) 2.5 million shares of series k preferred stock , and ( ii ) a warrant to pur- chase up to 88401697 shares of the firm 2019s common stock , at an exer- cise price of $ 42.42 per share , subject to certain antidilution and other adjustments . the series k preferred stock qualifies as tier 1 capital . the series k preferred stock bears cumulative dividends at a rate of 5% ( 5 % ) per year for the first five years and 9% ( 9 % ) per year thereafter . the series k preferred stock ranks equally with the firm 2019s existing 6.15% ( 6.15 % ) cumulative preferred stock , series e ; 5.72% ( 5.72 % ) cumulative preferred stock , series f ; 5.49% ( 5.49 % ) cumulative preferred stock , series g ; fixed- to-floating rate noncumulative perpetual preferred stock , series i ; and 8.63% ( 8.63 % ) noncumulative perpetual preferred stock , series j , in terms of dividend payments and upon liquidation of the firm . any accrued and unpaid dividends on the series k preferred stock must be fully paid before dividends may be declared or paid on stock ranking junior or equally with the series k preferred stock . pursuant to the capital purchase program , until october 28 , 2011 , the u.s . treasury 2019s consent is required for any increase in dividends on the firm 2019s common stock from the amount of the last quarterly stock div- idend declared by the firm prior to october 14 , 2008 , unless the series k preferred stock is redeemed in whole before then , or the u.s . treasury has transferred all of the series k preferred stock it owns to third parties . the firm may not repurchase or redeem any common stock or other equity securities of the firm , or any trust preferred securities issued by the firm or any of its affiliates , without the prior consent of the u.s . treasury ( other than ( i ) repurchases of the series k preferred stock and ( ii ) repurchases of junior preferred shares or common stock in connection with any employee benefit plan in the ordinary course of business consistent with past practice ) . basel ii the minimum risk-based capital requirements adopted by the u.s . federal banking agencies follow the capital accord of the basel committee on banking supervision . in 2004 , the basel committee published a revision to the accord ( 201cbasel ii 201d ) . the goal of the new basel ii framework is to provide more risk-sensitive regulatory capital calculations and promote enhanced risk management practices among large , internationally active banking organizations . u.s . bank- ing regulators published a final basel ii rule in december 2007 , which will require jpmorgan chase to implement basel ii at the holding company level , as well as at certain of its key u.s . bank subsidiaries . prior to full implementation of the new basel ii framework , jpmorgan chase will be required to complete a qualification period of four consecutive quarters during which it will need to demonstrate that it meets the requirements of the new rule to the satisfaction of its primary u.s . banking regulators . the u.s . implementation timetable consists of the qualification period , starting any time between april 1 , 2008 , and april 1 , 2010 , followed by a minimum transition period of three years . during the transition period , basel ii risk-based capital requirements cannot fall below certain floors based on current ( 201cbasel l 201d ) regulations . jpmorgan chase expects to be in compliance with all relevant basel ii rules within the estab- lished timelines . in addition , the firm has adopted , and will continue to adopt , based upon various established timelines , basel ii in certain non-u.s . jurisdictions , as required . broker-dealer regulatory capital jpmorgan chase 2019s principal u.s . broker-dealer subsidiaries are j.p . morgan securities inc . ( 201cjpmorgan securities 201d ) and j.p . morgan clearing corp . ( formerly known as bear stearns securities corp. ) . jpmorgan securities and j.p . morgan clearing corp . are each subject to rule 15c3-1 under the securities exchange act of 1934 ( 201cnet capital rule 201d ) . jpmorgan securities and j.p . morgan clearing corp . are also registered as futures commission merchants and subject to rule 1.17 under the commodity futures trading commission ( 201ccftc 201d ) . jpmorgan securities and j.p . morgan clearing corp . have elected to compute their minimum net capital requirements in accordance with the 201calternative net capital requirement 201d of the net capital rule . at december 31 , 2008 , jpmorgan securities 2019 net capital , as defined by the net capital rule , of $ 7.2 billion exceeded the minimum require- ment by $ 6.6 billion . in addition to its net capital requirements , jpmorgan securities is required to hold tentative net capital in excess jpmorgan chase & co . / 2008 annual report84 .

Question: what percentage of the increase in tier 1 capital was due to net income?
Answer: 12%
Calculation: divide(5605, 47358)