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Scenario: The bank share price is relative to book value was below its competitor banks by about 25%. Management made it clear that is believed

Scenario: "The bank share price is relative to book value was below its competitor banks by about 25%. Management made it clear that is believed the share price was undervalued, as opposed to low - value due to the lack of investor confidence."

Question: How does the above affects a bank's capital adequacy and what can be done to address the issue?

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