Mergers fail to produce value for shareholders of acquirers

Assignment Help Financial Management
Reference no: EM131588038

Mergers fail to produce value for shareholders of acquirers in many cases. Describe and explain some reasons for mergers failure. Use existing case to illustrate your point.

Reference no: EM131588038

Questions Cloud

Compute current total equity-projected assets-liabilities : Compute current total equity, projected assets, liabilities, change in equity, additional equity funding,
Capital structure shift change the firms cost of equity : If the risk free rate is 5.0 and the market risk premium is 6.0 by how much would the capital structure shift change the firms cost of equity?
Prepare cash budget with borrowing needed or repayments : Prepare a cash receipts schedule for November and December. Prepare a cash budget with borrowing needed or repayments for November and December.
What will be its optimal upper cash limit : The trading cost per sale or purchase of marketable securities to be $35.50 per transaction. What will be its optimal upper cash limit?
Mergers fail to produce value for shareholders of acquirers : Mergers fail to produce value for shareholders of acquirers in many cases. Describe and explain some reasons for mergers failure.
What is default risk premium on corporate bond : Assume that the liquidity premium on the corporate bond is 0.25%. What is the default risk premium on the corporate bond?
Common stockholders elect the firms directors and managers : A high-growth stock will give large dividends to its investors. Common stockholders elect the firms directors and managers.
What is the current intrinsic value of marine oils stock : What are Marine Oils’ cost of equity and weighted average cost of capital? What is the current intrinsic value of Marine Oils’ stock?
Use retained earnings rather than issue new common stock : What is Global's cost of retained earnings if it can use retained earnings rather than issue new common stock?

Reviews

Write a Review

Financial Management Questions & Answers

  What would the cash option payout be

The cash option amount is determined by discounting the winning amount at 8% over 22 years. - This week the lottery is worth $5 million to a single winner. What would the cash option payout be?

  Improve performance on this critical operational metric

Your job as Administrator of Alpine Surgery Center just keeps getting more interesting. After addressing some of the issues with contracting and cost finding, you start to look at operations. What you find is disappointing. How you would determine th..

  What must the coupon rate be on mertons bonds

What must the coupon rate be on Merton’s bonds?

  Determine the net present value of the project

Monk, Inc. is considering a capital budgeting project in Tunisia. The project requires an initial outlay of 1 million Tunisian dinar; the dinar is currently valued at $.70. Determine the net present value (NPV) of the project in each of the four poss..

  The markets expected annual inflation rate

Based on this, what is the market’s expected annual inflation rate for the next thirty years?

  What is the companys profit in the option market

What is the company's profit (or loss) in the option market if the T-bill rate is 4.5 percent in fi ve months?- If the T-bill rate is 5.5 percent? If the T-bill rate is 6.5 percent?

  Difference between the market realities and m and m theory

The M&M theory states it does not make any difference from an economists view whether a firm raises financing as equity or debt. However floatation costs are more for equity than debt and interest on debt is tax deductible whereas dividends are not. ..

  What is current value of put option with exercise price

Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).

  Effective yield on yearly basis at entity in percentage

What is the effective yield on a yearly basis at this entity in percentage terms with 4 digits after the decimal point?

  Assume market is in equilibrium with required return equal

Nick's Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $45 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required..

  Order to create an accurate forecast of sales

The lack of historical data makes it difficult to create a forecast and budget for a new company. Class, how many years of historical sales data do you think are necessary in order to create an accurate forecast of sales? Explain.

  Estimate the present value of the cash flows

XKL Co. plans a new project that will generate $ 187,000 of continuous cash flow each year for 8 years and additionally $108,000 at the end of the project. If the continuously compunded rate of interest is 4%, estimate the present value of the cas..

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