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What is the net present value of acquiring

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CBG Bank and GCB Bank are all-equity firms. CBG Bank has 1,000,000 shares outstanding at a market price of GHc4.50 a share. GCB Bank has 5,000,000 shares outstanding at a price of GHc5.2 a share. GCB Bank is acquiring CBG Bank for GHc5million in cash. The incremental value of the acquisition is GHc300,000. What is the net present value of acquiring The CBG Bank to GCB Bank?

Reference no: EM132525432

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