Smaller acquiring company to have large cash reserves

Assignment Help Financial Management
Reference no: EM131552552

1. Would it be unusual for a smaller acquiring company to have large cash reserves? Why or why not?

2. Do you think there are companies/individuals that intentionally over pay when acquiring a company?

 

3. Summarize some key points, insights and ideas that you could pass on to a future Finance student.

Reference no: EM131552552

Questions Cloud

Compute the price of both the call and put options : compute the price of both the call and put options using a three-step binomial tree.
What can you do to make the employee feel more comfortable : What can you do to make this employee feel more comfortable opening up to you in two-way communication?
What do you think of thrasymachus definition of justice : What do you think of Thrasymachus' definition of Justice? How well do you think Socrates refuted it?
Find the kinetic energy of the ions : At the left, labeled A, is a source of negatively charged chlorine ions Cl- (i.e., each ion carries a charge -e). A 1-MV potential difference is applied.
Smaller acquiring company to have large cash reserves : Would it be unusual for a smaller acquiring company to have large cash reserves? Why or why not?
Identify the leadership behaviors : Select the basic values that will provide the foundation of your model and identify the leadership behaviors that will result from those values.
What is cost of each alternative : Penn Corp. is analyzing the possible acquisition of Teller Company. What is the cost of each alternative?
Bound is available for purchase that has face value : A bound is available for purchase that has face value of $ 100000 an 8.5% coupon payable semiannually and 20 years of its original 25 years left to maturity.
Describe the stages of child development for children : For this post you will start by providing a summary describing the stages of child development for children that are entering Kindergarten.

Reviews

Write a Review

Financial Management Questions & Answers

  How appreciation of euro will likely affect value of project

Describe in general terms how future appreciation of the euro will likely affect the value (from the parent's perspective) of a project established in Germany today by a UK-based MNC.

  What is best estimate of the stocks current market value

Nachman Industries just paid a dividend of D0 = $1.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What..

  Reasons for any change in importance of residential loans

What is the difference between lending to individual borrowers via a residential home mortgage compared to other types of consumer lending?

  Is average private value equal to expected painting value

Is the average private value equal to the expected painting value? - What should be your absolute maximum bid before you expect to lose money?

  What is the net cash flow of the project each year

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,670,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2,340,000 in..

  Determine the real rate of return on a bond

Determine the real rate of return on a bond when inflation is around 2.4 percent and the bond yield is 5.6 percent.

  Sustainable growth rate in perpetuity

You believe that investors in Home Depot have an 10% cost of equity. Analysts’ currently expect Home Depot to earn $6.30 per share in exactly one year. After one year you expect Home Depot to grow at its sustainable growth rate in perpetuity.

  What is the annual cost savings expected to result

What is the annual cost savings expected to result from installation of the proposed JIT system?- Should the firm install the system?

  What is value of a share of common stock today

Suppose Nabisco Corporation just issued a dividend of $1.49 per share yesterday. what is the value of a share of common stock today?

  Classified shares have super-voting rights

The ceo of Echostar commmunications, Charlie Ergen, owned around 5% of the company's stock, but his multiple votes per share gave him around 90% of the vote. Based on this example, which of the following statements is true?classified shares have supe..

  Provide a list of the criteria and explain how it will ensur

Provide a list of the criteria and explain how it will ensure the curriculum and instructional methods utilized in your preschool are developmentally appropriate.

  What is the company target debt–equity ratio

Fama’s Llamas has a WACC of 10.3 percent. The company’s cost of equity is 13.2 percent, and its pretax cost of debt is 8.9 percent. The tax rate is 40 percent. What is the company’s target debt–equity ratio?

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