5. If a bank attracts new equity to increase its Tier 1 capital ratio,what happens to its...

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5. If a bank attracts new equity to increase its Tier 1 capital ratio,what happens to its cost of equity and its intrinsic value if it invests the new equity capital in

(a) deposits with the central bank or

(b) a broad equity market index?

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Valuation Measuring And Managing The Value Of Companies University Edition

ISBN: 978-1118873731

6th Edition

Authors: Mckinsey & Company Inc. ,Tim Koller ,Marc Goedhart ,David Wessels

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