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The Following Information Is Available on the Average Costs of the Three

question 44

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The following information is available on the average costs of the three major banks in a given local market. Bank A has assets of $10 million and average costs are 15 percent, Bank B has assets of $20 million and average costs of 13 percent while Bank C has assets of $30 million with average costs of 12 percent. Average costs are measured as a proportion of total assets.
-Bank B plans to acquire Bank A and in the process cut costs by $100,000. What is the combined bank's average costs?

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Definitions:

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