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5-A bank has decided it must raise external capital. Discuss the advantages and disadvantages of each of the following choices: a-subordinated debt b-preferred stock c-common

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5-A bank has decided it must raise external capital. Discuss the advantages and disadvantages of each of the following choices: a-subordinated debt b-preferred stock c-common stock 6-Risk based capital requirements may induce bank managers to change their asset composition. Explain why? Use two examples to illustrate how a shift in asset items would affect a bank's required capital

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