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But losses booked from selling at fire-sale prices could quickly wipe through thin layers of equity.
And in another case study for Anat Admati and Martin Hellwig's cautionary book, "The Bankers' New Clothes," the Cypriot banks had wafer-thin layers of equity, so big losses have to fall on creditors (unless taxpayers somewhere are feeling generous).
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The 24 billion euros needed to shore up the four Irish banks includes 10.5 billion euros for Allied Irish Bank, 3.7 billion for the Bank of Ireland, 4.5 billion for two smaller institutions and an additional 5.3 billion to serve as an extra layer of equity.
But what about its cost of equity?
The fourth came out of equity trading.
There's no offer of equity.
Cost of equity: 15%.
People are terrified of equity.
MTB = Market-to-book equity ratio (market value of equity divided by the book value of equity).
Here introduced are two concepts of equity.
Discussion: In defence and pursuit of equity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com