Explain the reasons behind NABs actions

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Question

On 27 April 2020, National Australia Bank (NAB) announced a dividend cut and a plan to raise $3.5 billion of new capital.

1. Explain the reasons behind NAB's actions. How did the market react to this news?

2. Fifteen months later, NAB revealed plans to buy back up to $5 billion of excess capital. How would NAB shareholders be affected by this action?

Reference no: EM133578606

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