Would the antitrust division likely challenge the merger

Assignment Help Finance Basics
Reference no: EM131143738

Assume an industry is composed of the following eight firms.

Company Market Share

Firm A ........... 30 percent

Firm B ........... 25 percent

Firm C ........... 15 percent

Firm D ........... 10 percent

Firm E ........... 7 percent

Firm F ........... 6 percent

Firm G ........... 4 percent

Firm H ........... 3 percent

HHI= sum of square of shares of all firms. 

a. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not?

b. If firms G and H propose a merger, would the Antitrust Division likely challenge the merger? Why or why not? 1984the rise in HHI is only 24-no action is warranted.

Reference no: EM131143738

Questions Cloud

Companies are engaged in the war on talent : It has become increasingly obvious that applicants are much more interested in what a company can offer above and beyond compensation and traditional health benefits. Companies are engaged in the War on Talent, most organizations have charged their r..
What is its gross profit and its gross profit rate : Reese Co. has sales revenue of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000.What is its gross profit and its gross profit rate?
Plot the data and provide insights about the time series : Forecasts and actual sales of MP3 players at Just Say Music are as follows: Month Forecast Actual Sales March 150 170 April 220 229 May 205 192 June 256 241 July 250 238 August 260 210 September 270 225 October 280 179. Plot the data and provide insi..
Prepare the closing entries for the sales account : Prepare the closing entries for the Sales account, assuming a balance of $200,000 and the Cost of Goods Sold account with a $145,000 balance.
Would the antitrust division likely challenge the merger : If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not? If firms G and H propose a merger, would the Antitrust Division likely challenge the merger? Why or why not? 1984the rise in HHI is only 24-no..
Hiring decision in way that promotes future ethical conduct : Suppose your company hires this candidate in spite of your concerns. What might be the consequences to the company? How can you communicate the hiring decision in a way that promotes future ethical conduct?
Give the journal entry on july 19 to record the receipt : Give the journal entry on July 19 to record the receipt of the balance due within the discount period.
Who procures component parts-services from various states : Imagine you are a senior manager in a U.S. manufacturing firm who procures component parts and services from various states. Analyze three (3) clauses in a potential contract that might put your company at risk if not sufficiently scrutinized prior t..
Means for organization to manage its human resources : Define what you think it means for an organization to manage its human resources. How does effective human resource management contribute to a company’s success? Support your response with information from the textbook or other peer reviewed or schol..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the optimal hedge ratio

Explain why an American option is always worth at least as much as its intrinsic value. Explain carefully the difference between writing a put option and buying a call option.

  An investment project provides cash inflows of 760 per

an investment project provides cash inflows of 760 per year for eight years. what is the project payback period if the

  Calculate the 13 basic ratios found in the chapter

Using the financial statements for the Niara Calendar Company, calculate the 13 basic ratios found in the chapter.

  How many new shares must the mitchell company sell

The investment bankers require an underwriting spread of 3% of the offering price, and the company's legal, accounting and printing expenses associated with the seasoned offering are estimated to be $750,000. How many new shares must the Mitchell ..

  What would be the after-tax amount

Michelle Williams is in the 30% personal tax bracket. She is considering investing in HCA (taxable) bonds that carry a 9% interest rate. What is her after tax yield (interest rate) on the bonds?

  Your analysis of two companies reveals identical levels of

your analysis of two companies reveals identical levels of working capital. are you confident in concluding their

  Severely eroded from osteoarthritis

Ken, age 52, works only part-time and has no health insurance. The cartilage in both his knees is severely eroded from osteoarthritis, which causes severe pain during his daily activities.

  Describing money and interest rates

What are the primary economic indicators that you would use if you were thinking about making a large purchase and needed a loan? For example, you may consider a new house, car, or new capital for a business?

  How much more is nancy cash flow worth

If the appropriate interest rate is 8 percent, how much more is Nancy's cash flow worth?

  What is the best estimate for morningside cost of equity

Morningside nursing home,a not-for profit corporation,is estimating its corporate cost of capital.

  Task background in this weekrsquos discussion you learned

task background in this weekrsquos discussion you learned how to construct probability distributions and graph them.

  Calculate the weighted average yield

Calculate the weighted average yield

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