Question: Kim Silverman CFO of the First Public Bank Company notes
Kim Silverman, CFO of the First Public Bank Company, notes: “We are fortunate to have a cost of capital of only 7 percent. We want to leverage this advantage by acquiring other banks that have a higher cost of funds. I believe that we can add significant value to these banks by using our lower cost financing.” Do you agree with Silverman’s analysis? Why or why not?
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