A firm announces intent undertake levered recapitalization, Corporate Finance

A firm announces its intent to undertake a levered recapitalization, issuing debt to repurchase a fraction of the outstanding common stock.

Upon the announcement, its stock price declines. Describe (list) 2 reasons why you might have expected that the price would instead have risen and 2 reasonable potential explanations for the decline.  

Each explanation should be very brief, concise and to the point with complete sentences.

Posted Date: 4/5/2013 5:29:49 AM | Location : United States

Related Discussions:- A firm announces intent undertake levered recapitalization, Assignment Help, Ask Question on A firm announces intent undertake levered recapitalization, Get Answer, Expert's Help, A firm announces intent undertake levered recapitalization Discussions

Write discussion on A firm announces intent undertake levered recapitalization
Your posts are moderated
Related Questions
Question: a) NLTF= Mur150m; WCN= 146m; Liquidity= 14m b) Balance Sheet has been solidified by loan from the Holding Company. Had the loan not been prov

Robert Shapprio Leasing CO (40% tax rate) I determining leae rate for a number of equipment . it is allowed to use the following accelerated depreciation rate 3 years: 25%   38%

This is an accounting term which is applicable to stockholders of closely going businesses. Accumulated earnings and profits are a company's net profits after subtracting distribut

Question: i) Show the Modigliani-Miller irrelevancy theorem for corporate capital structure. What assumptions underline the theorem? ii) What the implications with the exis

The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, how would Cl

what is the agency relationship between shareholders and auditore

Table gives the average MAPE for all SKUs with positive preview demand together (overall) and also per preview demand class. Furthermore, the error percentages in bold were signi?c

Who regulates the stock market and the reason for the need for such standard and heavy regulations

the managing directors of three profitable listed companies discussed their company''s dividend policies. company A has deliberately paid no dividends for the past five years. comp

Pfizer Incorporated has 2 million shares of common stock, selling at $18 each. The β of the stock is 1.5, T-bill rate is 6%, and the expected return on the market is 12%. Pfizer al