Answer Posted / navii
In business, a takeover is the purchase of one company (the
target) by another (the acquirer, or bidder). Before a
bidder makes an offer for another company, it usually first
informs that company's board of directors. If the board
feels that accepting the offer serves shareholders better
than rejecting it, it recommends the offer be accepted by
the shareholders.
In a private company, the shareholders and the board are
usually the same people or closely connected with one
another. So, private acquisitions are usually friendly,
because if the shareholders agree to sell the company then
the board is usually of the same mind or sufficiently under
the orders of the shareholders to cooperate with the
bidder. This point is not relevant to the UK concept of
takeovers, which always involve the acquisition of a public
company.
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Can you please help me calculate the pre tax profit for credit card for 2014 using the following Assumptions. Request you to list the steps used. Charges Late fee £12 per occurrence Over limit fee £10 per occurrence Cash fees 3% of cash withdrawal value Annual Fee £25 per account, per year Interchange 1% of transaction value KPIs Accounts overdue 10% per month Accounts over limit 15% per month Average APR 30% Balances revolving 90% of balance Average balance £900 at end of 2013 Expected growth in average balance (2014) 10% per annum Assumptions Open accounts 200,000 at 2013 year-end New accounts booked 5,000 per month Annual operating cost £50 per open account Cost of Acquisition £50 per account Provision rate 9% of total balances Annual cost of funds 4% by balance Charge off Unit charge-off rate in 2014 11% of accounts at 2013 year-end Unit charge-off rate in 2014 0% of accounts booked in 2014 Post charge-off recoveries 20% of balance Account Transactions Monthly turnover 5% of total month end balances Cash advances 20% of monthly turnover Additional Assumptions Please state any additional assumptions you have made to calculate your answer Thanks in advance,
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