What is the net present value of acquiring

Assignment Help Finance Basics
Reference no: EM132525432

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

Questions Cloud

How do you calculate cash flows from operating activities : How do you calculate cash flows from operating activities in a financial statement
Five supported remedies are expected to be proposed : You are expected to surface at least five problems and show why you expect these problems to occur.
Discuss any issues in computing wacc by the hong kong : Discuss any issues in computing the WACC by the Hong Kong listed companies. computing the WACC. Is that mean any factor affect WACC.
Calculate covariance of the returns for two stocks : Given the distributions of returns for the following two stocks, calculate the covariance of the returns for the two stocks. Assume the expected return is 10.8
What is the net present value of acquiring : The incremental value of the acquisition is GHc300,000. What is the net present value of acquiring The CBG Bank to GCB Bank?
What is var for one of the investments : Suppose that each of two investments has a 1.5% chance of $20M (= 20 million) loss and a 98.5% chance of $4M loss in 1 year. The investments are independent of
Did joe act ethically in not revealing fully reason for sell : Did Joe act ethically in not revealing fully his reasons for selling the business? Why or why not? Identify the stakeholders in this situation.
Difference of discounted values of two alternatives : Decide if the borrower should refinance the debt or not by showing the difference of discounted values of two alternatives.
What kind of impact of physician practice : What kind of impact of physician practice patterns on the results of the hospital operating budget and capital budget?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd