Common theories of what causes mergers and acquisitions

Assignment Help Financial Management
Reference no: EM131831993

1. Please explain in detail.

State and explain any 4 of the common theories of what causes mergers and acquisitions, and their respective motivations.

Also indicate whether each one of these theories is consistent with maximization of shareholder value for the acquirer and the target.

2. A firm has a profit margin of 7.5% and an equity multiplier of 2.2. Its sales are $50 million, and it has total assets of $30 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131831993

Questions Cloud

How would you recommend that PKI be implemented : Your company is considering incorporating PKI. How would you recommend that PKI be implemented to support these two application areas?
Identify the computer activities for the employees : Identify the computer activities for the employees of each department. Then create a security policy for the employees of each department.
Essay on skin disorder : Describe the structure and function of the skin (integumentary system) and related diseases.
How does size of a key affect strengths of an encryption : How does the size of a key affect the strengths and weaknesses of an encryption technique? Consider both a friendly use of key and an unfriendly use of the key.
Common theories of what causes mergers and acquisitions : State and explain any 4 of the common theories of what causes mergers and acquisitions, and their respective motivations.
Particular type of protein in the cell : If you want to track the location/movement of a particular type of protein in the cell to see where it is localized, what kind of technique
What is the initial investment in the product : What is the initial investment in the product? Remember working capital. What is project IRR?
Relationship between monomers and polymers : What is the relationship between monomers and polymers? Give an example using proteins.
Percentage of individuals would be predicted : Two heterozygote tongue rollers (dominant trait) have a child. What percentage of individuals would be predicted to be heterozygotes, homozygous dominant

Reviews

Write a Review

Financial Management Questions & Answers

  Describe the role of the financial institutions

Describe the role of the financial institutions and financial markets in our economy. Differentiate between primary and secondary markets. Differentiate between money and capital markets.

  Share value using the discounted dividends method

Assume a firm will pay its first dividend in 2 years. This initial period’s dividend is forecast to be $3.00 per share for the first 3 years and then is expected to grow at 4% per year in perpetuity. Assume WACC = 12%; the cost of equity is 16%; the ..

  Calculate forward interest rates for the second year

Suppose that zero interest rates with continuous compounding are as follows: - Calculate forward interest rates for the second, third, fourth, and fifth years.

  Calculate the value of a derivative

Use a two-step tree to calculate the value of a derivative that pays off [max(30 - ST ; 0)]2 , where ST is the stock price in 4 months.

  No debt but can borrow-tax rate

Chandeliers Corp. has no debt but can borrow at 6.4 percent. The firm’s WACC is currently 8.2 percent, and the tax rate is 35 percent. If the firm converts to 35 percent debt, what is the company’s WACC? If the firm converts to 50 percent debt, what ..

  Ethics in accounting-model of moral development

Discuss these issues from the perspective of Kohlberg's model of moral development.

  Creating your personal brand

This chapter described several different ways to use social media to build and grow your personal brand identity.

  What should be ranyard current stock price

What should be Ranyard's current stock price?

  What is the return on portfolio

If the price of Johnson and Johnson increases to $80 and the price of Yahoo decreases to $18 per share, what is the return on your portfolio?

  Yield same value for equity

Show that the two valuation methods proposed by Officer (1994) yield the same value for equity.

  Estimate the stock price for yahoo

estimate the stock price for Yahoo-  and provide the analysis as requested. - Using the same peers and industry data,  estimate Yahoo! WACC.

  What is the implied growth rate for company

A business paid a dividend last year of $2.4, and its stock is currently trading at $51 a share. If investors require a rate of return of 12.2, what is the implied growth rate for this company?

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