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

  Two values you get for the operations of the firm

You have been asked to value a company using the FCF method. The free cash flow last year for the company was $20 million. Free cash flow for next year expected to be -$20 million. The following year you expect is to be $15 million. You have been ask..

  In a three- to five-page paper not including title and

in a three- to five-page paper not including title and reference pages select a service organization to use as an

  What is value of firm excluding any growth opportunities

Annie's Donut Shops, Inc., has expected earnings of $3 per share for next year. The firm's ROE is 11%, and its earnings retention ratio is 80%. If the firm's market capitalization rate is 9%, what is the value of the firm excluding any growth opportu..

  What is the standard deviation of the stocks returns

You find a certain stock that had returns of 13.4 percent, –21.7 percent, 27.7 percent, and 18.7 percent for four of the last five years. Assume the average return of the stock over this period was 11.40 percent. What was the stock’s return for the m..

  Calculate the present value of this investment

Cash flows from a new factory are expected to be $3,000,000 per year, every year for the next ten (10) years. If investor's use 6.25% as the discount rate, calculate the present value of this investment.

  Compute NPV and IRR

How do you compute NPV and IRR from the following information?

  The appropriate key to find the unknown variable

Find the present value of the following ordinary annuities (Note: if your using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable.

  Price and dividend data relating to two stocks

Consider the following Price and Dividend data relating to two stocks that are held in a portfolio. Below are the stock prices and the dividends of Berger during 2009 to 2014: Date Price ($) Dividend ($) respectively

  About mergers and acquisitions and taxes

In a statutory merger, only assets and liabilities shown on the target firm’s balance sheet automatically transfer to the acquiring firm. Which of the following is not true about mergers and acquisitions and taxes? Which of the following is not true ..

  What is the amount of the firms ebit

Advantage First Corporation has sales of $4497277; income tax of $324748; selling, general, and administrative expenses of $275122; depreciation of $303941; cost of goods sold of $2812586; and interest expense of $161713. What is the amount of the fi..

  What is after-tax cost of debt in weighted average cost

The coupon rate on a debt issue is 6%. If the yield to maturity on the debt is 9%, what is the after-tax cost of debt in the weighted average cost of capital if the firm's tax rate is 34%?

  What is the firms after-tax cost of debt

5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,550 face value and a 6% coupon, semiannual payment ($46.5 payment every 6 months). The bonds currently sell for $845.87. If the firm's marginal tax rate is 40%, wha..

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