GREY:GDPEF - Post by User
Comment by
LeftBookon May 01, 2019 9:44pm
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Post# 29698364
RE:RE:RE:RE:hypothetical investment of $20M cash plus $20M tax credits
RE:RE:RE:RE:hypothetical investment of $20M cash plus $20M tax credits
The XYZ company is purely fictious.
Fictious XYZ company has the $20M has the cash RCG needs to begin operations.
No liabilities.
XYZ has $10M of tax credits.
A merger would increase the tax credits to $30M
Dufferin could be mined tax free.
121.1-89.2=31.9
RCG has $31.3M of assets. XYZ has $20M of assets.
XYZ is smaller in terms of assets.
Consider two scenarios XYZ has 200M shares or 400M shares.
I am curious how one might value XYZ 's cash and tax credits.