Explain how the practice of corporate takeovers

Assignment Help Financial Management
Reference no: EM131336206

Explain how the practice of corporate takeovers was arguably collectively irrational if we suppose that the corporation’s ultimate objective is long-term growth (and, hence, profitability).

Reference no: EM131336206

Questions Cloud

Difference between horizontal growth and vertical growth : What is the statistical interpretation of the expected future spot rate? What is the difference between horizontal growth and vertical growth?
Neighbor decision to invest in this business venture now : Recently, a neighbor you have known for years won a lottery and received a $250,000 prize. This neighbor decided to invest all of his winnings in a new business venture that he knew only had a 5 percent chance of success. Which one of the following b..
Anytime ted analyzes a proposed project : Anytime Ted analyzes a proposed project, he always assigns a much higher probability of success to the project than is warranted by the information he has gathered. Which one of the following best illustrates an error which you, as a project manager,..
Compute the future value in year : Compute the future value in year 9 of a $4,500 deposit in year 1 and another $4,000 deposit at the end of year 5 using an 9 percent interest rate.
Explain how the practice of corporate takeovers : Explain how the practice of corporate takeovers was arguably collectively irrational if we suppose that the corporation’s ultimate objective is long-term growth (and, hence, profitability).
Companies perceived to be underperforming : How did a focus on stock price specifically figure into the strategy of taking over, or threatening to take over, companies perceived to be underperforming?
What is the aftertax salvage value of that machine : Three years ago, Green Glass purchased a machine for a 3-year project. The machine cost 868,000 and is being depreciated using MACRS 3 year class (use table in previous question) Today, the project ended and the machine was sold for 90,000. What is t..
What is your cash flow in time for this investment : You are working on a bid to build two apartment buildings a year for the next 5 years for a local college. This project requires the purchase of $750,000 of equipment that will be depreciated using 5 year MACRS. You will also need $146,000 in net wor..

Reviews

Write a Review

Financial Management Questions & Answers

  Cash flows over the four-year life of the investment

An investment has an installed cost of $580,382. The cash flows over the four-year life of the investment are projected to be $209,584, $253,318, $201,674, and $169,313. If the discount rate is zero, what is the NPV? At what discount rate is the NPV ..

  What is your net profit on the option

You have purchased a put option on Pfizer common stock. The option has an exercise price of $44 and Pfizer’s stock currently trades at $46. The option premium is $0.50 per contract. What is your net profit on the option if Pfizer’s stock price does n..

  What would be the market value of the condominium

A condominium is purchased for $80,000 with a down payment of $12,000 at an annual interest rate of 9% for 15 years. Calculate the unpaid balance after 10 years of making payments. What would be the market value of the condominium in Exercise 21 afte..

  What is your annualized return from these two investments

Suppose you have $90,000 to invest. You’re considering Miller-Moore Equine Enterprises (MMEE), which is currently selling for $90 per share. You also notice that a call option with a $90 strike price and six months to maturity is available. The premi..

  What is the firms cash conversion cycle

Cash Conversion Cycle. Company X is concerned about managing cash efficiently. On the average, inventories have an ago of 90 days, and accounts receivable are collected in 60 days. What is the firms operating cycle? What is the firms cash convesion c..

  Expects output levels to remain steady in the future

Galt Motors currently produces 500,000 electric motors a year and expects output levels to remain steady in the future. It buys a part from an outside supplier at a price of $2.50 each. The plant manager believes that it would be cheaper to make the ..

  Identify the companys primary competitors

Identify the companys primary competitors and Show the size in revenues or market cap of the company along with its top competitors.

  What is the fair value of these cash flows today

Your friend just bought a new car for $30,298. You expect that the value of the car will decline by 6 percent every year. What will be the value of the car in 8 years?  Starting at the end of year 2, and every even-numbered year thereafter (i.e., yea..

  Strict economic point view

Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a total of $1.3 million now, or she can elect to be paid $100,000 at the end of each of the next 25 years. If Gabrielle can earn 5% annually on her investments..

  Internal rate of return for the expansion project

Your client, Rich Industries, is considering an expansion of their plant facilities to increase their capacity for a new product line. The company has provided the following information for your analysis. Prepare a spreadsheet calculation of the Net ..

  The cost of debt is lower than the costs of stocks

The cost of debt is lower than the costs of stocks. Cost of Preferred stock is higher than the cost of common stocks.

  Encourage the development and use of solar energy

What policies (taxes, subsidies, etc) would you recommend in order to encourage the development and use of solar energy (passive and photovoltaic energy)? Explain in detail.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd