Pros and cons in regards to two corporations merging

Assignment Help Financial Management
Reference no: EM131300233

When two corporations merge, there are pros and cons to such an action. Name at least 2 pros and 2 cons in regards to two corporations merging, then state your personal outlook on whether these mergers (most of the time) are a good or bad idea.

Reference no: EM131300233

Questions Cloud

Portfolio with half of its money invested in stock : Stocks A, B, and C all have an expected return of 10% and a standard deviation of 25%. Stocks A and B have returns that are INDEPENDENT of one another, i.e., their correlation coefficient, r, equals zero. Portfolio AC is a portfolio with half of its ..
What is the apr on this loan and ear on this loan : You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 35-year mortgage loan for 85 percent of the $3,800,000 purchase price. The monthly payment on this loan will be $17,900. What is the APR on this loan? What is the..
What happens to value of your investment if interest rates : Suppose you just bought a 15-year annuity of $7,400 per year at the current interest rate of 11 percent per year. What is the value of your annuity today? What happens to the value of your investment if interest rates suddenly drop to 6 percent?
Beta of the portfolio is equal to the average of the betas : For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? The beta of the portfolio is equal to the average of the betas of the individual stocks
Pros and cons in regards to two corporations merging : When two corporations merge, there are pros and cons to such an action. Name at least 2 pros and 2 cons in regards to two corporations merging, then state your personal outlook on whether these mergers (most of the time) are a good or bad idea.
Comes to saving for retirement : Kaitlyn Tabor, a 25-year-old personal loan officer at First National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she"ll retire a..
Bond interest payments before and after taxes : Bond interest payments before and after taxes Charter Corp. has issued 1,801 debentures with a total principal value of ?$1,801,000. The bonds have a coupon interest rate of 6?%. What dollar amount of interest per bond can an investor expect to recei..
Invest and is looking for long-term return : As a long-time investment expert, you have come to firmly believe in the following rules: If a person is age thirty-five or younger, and is married, then he or she should invest in securities. If a person has less than $20,000 to invest and is lookin..

Reviews

Write a Review

Financial Management Questions & Answers

  Banker has offered you several options for borrowing

Your banker has offered you several options for borrowing $20,000. Which is the best choice for you?

  What rate of return should jacobs require on a project

What rate of return should Jacobs require on a project of average risk?- If a new venture is expected to have a beta of 1.6, what rate of return should Jacobs demand on this project?

  Firm is considering new product development

Your firm is considering a new product development. An outlay of $110,000 is required for equipment, and additional net working capital of $5,000 is required. Implementing the project will generate a time zero investment tax credit benefit of $3,000 ..

  State of economy security return

Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assuming that all three states are equally likely. State of Economy Security Return If State Occurs Recession –6 % Normal 10 Boom..

  Considering two independent projects

You are considering two independent projects with the same discount rate of 11 percent. Project A costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $5..

  Based on dividend growth model-price of stock will constant

Based on the dividend growth model, the price of a stock will remain constant if the dividend is cut, provided that the: Dividends tend to fluctuate in direct relation to changes in annual earnings. Managers are less concerned with the change in the ..

  Derive forecasts of the future spot rate

Deriving forecasts of the future spot rate. Use the forward rate to forecast the percentage change in the Mexican peso over the next year.

  Account boasts a nominal annual return

Suppose your uncle takes the $40,000 now and wishes to invest it. He calls you because he is confused from an ad he sees. Investments-R-Us is offering the Euler Fund which compounds continuously and the Daley Fund which compounds 360 days per year. “..

  Interest rates and debt securities assessment

Form a discussion on the possible determinants of market interest rates. For each determinant offer illustration for when that determinant may tend to be either stronger or weaker and what is the driving force for that differential impact. For exampl..

  Compute allowance and net accounts receivable

In 2015, Variman, Incorporated had Gross Accounts receivable of $36,200 and management estimated the Allowance for Doubtful accounts to be $2,500. Compute the ratio of Allowance of Doubtful accounts to Net Accounts receivable for Variman, Inc. for 20..

  What is expected rate of return and volatility of portfolio

You have $10,000 to invest. You decide to invest $20,000 in Google and short sell $10,000 worth of Yahoo! Google's expected return is 15% with a volatility of 30% and Yahoo!'s expected return is 12% with a volatility of 25%. The stocks have a correla..

  Adding robotic paint sprayer to its production line

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold af..

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