Gregory Savings Association has just received an offer to merge from Courthouse County Bank. Gregory’s stock is currently selling for $60 per share. The shareholders of Courthouse County agree to pay Gregory’s stockholders a bonus of $5 per share. What is the merger premium in this case? If Courthouse County's shares are now trading for $85 per share, what is the exchange ratio between the equity shares of these two institutions? Suppose that Gregory has 20,000 shares and Courthouse County has 30,000 shares outstanding. How many shares in the merged firm will Gregory’s shareholders wind up with after the merger? How many total shares will the merged company have outstanding?
Answer to relevant QuestionsWhat different kinds of services do banks offer the public today? What services do their closest competitors offer?The city of Dryden is served by three banks, which recently reported deposits of $250 million, $200 million, and $45 million, respectively. Calculate the Herfindahl index for the Dryden market area. If the second and third ...What are the principal goals of international banking regulation? This chapter focuses on several major problem areas that international banks must deal with in the future. What are these problem areas?Pacific Trading Company purchased Canadian dollars yesterday in anticipation of a purchase of electric equipment through a Canadian supply house. However, Pacific was contacted this morning by a Japanese trading company that ...
Post your question