Explain the significance of these terms in merger analysis

Assignment Help Finance Basics
Reference no: EM131103553

Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibilities for operating synergy.

Reference no: EM131103553

Questions Cloud

What is the per-share value of vandell : What is the per-share value of Vandell to Hastings Corporation? Assume Vandell now has $10.82 million in debt.
What is the current value of vandell''s stock : Vandell's free cash flow (FCF0) is $2 million per year and is expected to grow at a constant rate of 5 percent a year; its beta is 1.4. What is the value of Vandell's operations? If Vandell has $10.82 million in debt, what is the current value of Van..
Distinguish between operating mergers and financial mergers : Distinguish between operating mergers and financial mergers.
Might a tender offer be used : Firm A wants to acquire Firm B. Firm B's management agrees that the merger is a good idea. Might a tender offer be used?
Explain the significance of these terms in merger analysis : Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibi..
Define synergy; merger horizontal merger vertical merger : Define each of the following terms:a. Synergy; mergerb. Horizontal merger; vertical merger; congeneric merger;conglomerate mergerc. Friendly merger; hostile merger; defensive merger; tender offer; target company;breakup value; acquiring company d. Op..
Total amount available for distribution to all claimants : What is the total amount available for distribution to all claimants? What is the total of creditor and trustee claims? Will the preferred and common stockholders receive any distributions? Determine the dollar distribution to each creditor and to th..
How much shareholders receive from the liquidation : a. How much will McDaniel's shareholders receive from the liquidation? b. How much will the mortgage bondholders receive? c. Who are the other priority claimants in addition to the mortgage bondholders? How much will they receive from the liquidation..
Construct the pro forma balance sheet : Construct the pro forma balance sheet assuming that reorganization takes place. Show the new preferred at its par value. Construct the pro forma income statement. How much does the proposed recapitalization increase income available to common shareho..

Reviews

Write a Review

Finance Basics Questions & Answers

  There are several ways a company can allocate overhead

there are several ways a company can allocate overhead costs to products produced or services provided. two of these

  Find a low-risk stock-walmart or kellogg be a good candidate

Find a low-risk stock-Walmart or Kellogg would be a good candidate but any are welcome. Use monthly returns for the most recent three years to confirm that the beta is less than 1.0.

  Summarised views of the concept and the solutions

Summarised views of the concept and the solutions found in The Goal to solve or alleviate the company

  Prepare a fundamental financial analysis of the firm

Prepare a fundamental financial analysis of the firm from its published financial statements. After selecting the firm and analyzing its most recently published annual report.

  Construct a scatter diagram showing the relationship

You are given the following set of data: Construct a scatter diagram showing the relationship between returns on Stock Y and the market. Use a spreadsheet or a calculator with a linear regression function to estimate beta. b. Give a verbal interpreta..

  What is the minimum number of units the firm should pre-sell

What is the minimum number of units the firm should pre-sell to ensure its potential loss does not exceed the desired level? need to see all work.

  Determine the best alternative

Suppose your uncle has given you three options for your inheritance. You can have $10,000 now; $2,000 per year for the next eight years; or $24,000 at the end of 8-years.

  Explaining strengthening basis benefits a short hedge

Describe why strengthening basis benefits a short hedge and hurts a long hedge.

  What is the price of the stock today

If the required return is 10 percent, what is the price of the stock today?

  If the after-tax net cash inflow from these operations

sales of the kotter company during the past year were all cash sales. similarly all expenses were paid in cash. the

  Spot-money and bond markets

Explain how the Wal-Mart outlets in China would use the spot market in foreign exchange. Explain how Wal-Mart might utilize the international money markets when it is establishing other Wal-Mart stores in Asia. Expalin how Wal-Mart could use the inte..

  Find the amount for amortization expense

At the starting of 2006, Findlay Company received a three-year zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8 percent at that time

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