Case ID: 298016
Solution ID: 22429
Words: 2191
Price $ 75

Chase Manhattan Corp The Making of Americas Largest Bank Case Solution

Case Solution

Pursue Bank and Chemical Bank expect to consolidation, creating the biggest business bank in the United States, the fourth biggest on the planet. Anticipated budgetary advantages under the merger reflect critical arranged lessening in working expenses, including 17,000 representative cutbacks. Administration likewise anticipates that the merger will create critical income increments as an aftereffect of expanded economies of scale and degree, and different advantages of size and business initiative. The assignment of esteeming the merger increases, arranging an adequate merger cost, and actualizing the post-merger rebuilding is to a great degree complex.

Excel Calculations

·         Changes

·         Equity/Asset Ratio

·         Debt/Asset Ratio

·         Return on equity

·         WACC

·         Estimated gains and expenses

·         Total expenses

·         Overall gain

·         NPV

·         NPV calculations

·         Merger Calculations       

·         Common value of merged companies                                   

·         Premium offered                                            

·         Value of chase                                 

·         Value of chase after premium                                   

·         Share price per Chemical share                                 

·         Value of chase in number of Chemical share after premium (amount of shares exchanged)        

·         Shares after merger                                      

·         New share price   

Questions Covered

1.       Overview

2.       Benefits of formation of Chase Manhattan Bank

3.       Risks

4.       Quantitative Factors

5.       Conclusion

6.       Appendix