Lion Bank had $150 million in assets and $60 million in expenses before the acquisition of Sell Bank, which had assets of $50 million and expenses of $10 million. After the merger, the bank had $180 million in assets and $60 million in costs (Round to three decimal places). A. What is the cost percentage before the acquisition? B. What is the cost percentage after the acquisition? C. Did this acquisition generate economies of scale or economies of scope?

Lion Bank had $150 million in assets and $60 million in expenses before the acquisition of Sell Bank, which had assets of $50 million and expenses of $10 million. After the merger, the bank had $180 million in assets and $60 million in costs (Round to three decimal places). A. What is the cost percentage before the acquisition? B. What is the cost percentage after the acquisition? C. Did this acquisition generate economies of scale or economies of scope?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 25P

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