Friday, May 10, 2019

Mergers and Acquisitions in the Banking Industry Research Paper

Mergers and Acquisitions in the Banking Industry - query Paper ExampleIn April 1998, the month of the unification the opening outlay was at $60.44, the closing cost was at $61.19 with the lavishlyest price $73.50 and the lowest price $59.19. The volume traded was $10,441,700, with the adjusted closing product line price as $21.49. Two twelvemonths after the merger in April 2000, the opening price was at $60.00, the closing price was at $59.00 with the volume being traded $15,572,900. The highest and the lowest prices were at $65.44 & $56.00 respectively with the adjusted closing price at $31.81.The stock price analysis depicts that the stock price for Citicorp increased after the merger of the Citibank with Travelers Group. However dickens years down the line the stock price for the company reduced relative to the year of the merger depicting a stalls stock position.In 1998, the year of the merger, the average price earning balance was at 20.70, with the share price & sales dimension at 1.49. The share price and book think of ratio for the company was at 2.63, with a net profit margin of 12.3. The book value per share in 1998 was at $9.46. Two years after the merger in 2000 the average price earning ratio was at 20.20, with the share price & sales ratio at 2.61. The share price and book value ratio for the company was at 3.87, with a net profit margin of 19.3. The book value per share in 2000 was at $13.18.Two years before the merger, the ROE for the Citibank and... The return on equity ratio stood at 16.3% with the interest coverage in 1998 was 1.4. Two years after the merger, the debt equity ratio for the company in 2000 was at 4.14, and the return on assets ratio at 1.4%. The return on equity ratio stood at 18.5% with the interest coverage in 2000 was 1.5. Since the deal closure of the merger, the ROE of the Citicorp has fluctuated dramatically loss as high as 19.86 percent 18 months after the merger to arrive at a relatively stable position of 5 .76 percent in 2000.Operating Cash Flows & Absolute Cash FlowsIn 1996, the operating silver in flow for the Citibank was at $3,143 millions, and in the following years the cash flow for the company fluctuated dramatically going up to $8,844 million 18 months before the merger and as low as $(94) million 15 months before the merger. In 1998, at the time of the merger, the cash flow of the company stood at $2,066 million. This decreased as to $33 million when the deal was closed. Two years after the merger the cash flow value of the company was at $1,923 million. The cash flow position of the company has reduced in terms of cash generation on an annual basis since its merger with Travelers Group.Wells Fargo & CoThe Wells Fargo & Co is a company operating in the financial sector in the US. It is the only bank in the US which has been rated in the category of AAA. The company was built after the acquisition of the Northwestern Corporation in the year 1998. Since then the company has e stablished itself in the market in an appreciative manner. Stock Price The stock price of the Citicorp in February 2003 opened at $45.57 and closed at $45.35. The highest stock price reported in the month was at $45.98 with the

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