Describing non-value maximizing mergers in finance world

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Q1) Write down the main kinds of divestitures? What motivates firms to divest assets? Write down the factors that define synergy in domestic and international mergers and acquisitions? Describe how Agency problems can lead to non-value maximizing mergers in finance world.

Q2) Firm's bonds have maturity of 10 years with the $1000 face value, the 8% semi-annual coupon, are callable in five years, at $1,050, and presently sells at the price of= $1,100. Compute the yield to call (YTC)?

Q3) 11.7%, $1,000 face value bonds of Tim McKnight, Inc., are presently selling at $915.12. Determine the current yield? ABC's Inc.'s bonds presently sell for= $1,280 and have the par value of $1,000. They pay $135 annual coupon and have 15-year maturity, but they can be called in five years at $1,050. Determine their yield to call (YTC)?

Q4) ABC has issued bond with characteristics given below: Par: $1,000; Time to maturity: 16 years; Coupon rate: 5%; Suppose annual coupon payments. Compute price of this bond if the YTM is 5.96%.

Reference no: EM1310786

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