If Bank C agrees to be purchased by Banks A and B, what proportion of assets of Bank C should be taken by Banks A and B, respectively in order to have equal post-merger assets?
A)52 percent and 48 percent.
B)50 percent and 40 percent.
C)56 percent and 44 percent.
D)40 percent and 50 percent.
E)45 percent and 55 percent.

Question

Quizplus · Accepted Answer

To have equal post-merger assets, the proportion of assets taken by Banks A and B should be such that their total assets become equal. This requires calculating the correct percentage split based on their existing assets and the assets of Bank C. The correct split is 56 percent for Bank A and 44 percent for Bank B.

If Bank C Agrees to Be Purchased by Banks a and B