User Account

All Pages

Good reasons for merging of companies

Assignment Help Finance Basics
Reference no: EM133111762

Explain whether the following are good reasons for merging of companies:

(i) To reduce operating cost;

(ii) To diversify risk;

(iii) To optimise the utilisation idle cash;

(iv) To improve the Price/Earnings (P/E) ratio.

Reference no: EM133111762

Questions Cloud

Calculate the return required by shareholders : Calculate the return required by shareholders as a result of this redemption.
Profitability with exercise of the early repayment clause : Gamma has just issued a five-year bond with an early redemption clause (early redemption price equal to par). The coupon rate is 7%. Early redemption will be po
Demonstrating effectiveness of cutlers preventive programs : What methods might prove helpful in demonstrating the effectiveness of Cutlers preventive programs and How might a more effective evaluation program
Estimate of the stock price today : Wally wants your advice on a potential stock purchase. There is excess capital on the balance sheet - and he wants to put it to good use. He is excited because
Good reasons for merging of companies : Explain whether the following are good reasons for merging of companies:
What will be the 1-year treasury rate 1 year : If a 1-year Treasury bond currently yields 6%, and a 2-year bond currently yields 6.5% based on the expectation theory. What is the reason that the 2-year bond
Calculate the portfolio weights of the minimum : Calculate the portfolio weights of the minimum variance portfolio for TWO of the risky assets of vour choice
Yield on two-year zero-coupon bonds : The yield on one-year zero-coupon bonds is 4.5% and the yield on two-year zero-coupon bonds is 7.5%.
Volatility of the asset value : A firm wants to borrow $3,000,000 million to buy an asset whose current value is $3,130,469 million. The firm wants to take out the loan for 2 years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss how derivatives could be used to hedge the risk

The interest rate swap counterparty is the same bank (Bank of America) to whom the asset manager lent $50,000,000 via the USD LIBOR deposit.

  Valuable intellectual property of a franchisor

After the brand name/brand identity of a Franchise, what do you think is the most valuable intellectual property of a Franchisor, and why?

  Daily costs for kelso manufacturing include 1000 of fixed

daily costs for kelso manufacturing include 1000 of fixed costs and total variable costs are show below. unit

  Closing cost for the new loan

Suppose the closing cost for the new loan will be $5,500 plus $150 for recording fees. Should the borrower refinance?

  Find the return on investment

Pisa has not performed spectacularly to date. However, it wishes to issue new shares to obtain $100,000 to finance an expansion into a promising market.

  Find an example of a document that misuses graphics

Find an example of a document that misuses graphics. Discuss how the graphics are misused and what could be done to better them.

  Calculate and identify the source of cash

Calculate and identify the source of cash or the use of cash for each account change by filling into the column next to the ending balance.

  How the valuation of chimpchange may change

On May 3, 2016, Thomas Andrews, a young investment banker, was examining the current situation of ChimpChange Limited (ChimpChange), a financial technology (fin

  Computing the average return for treasury bills

Computing the average return for treasury bills and calculate the average return for Treasury bills and the average annual inflation rate

  Equivalent annual costs and rank the investments

My question is when appraising mutually exclusive investments in plant and equipment, financial managers calculate the investments

  What is the present value of an annuity consisting of

what is the present value of an annuity consisting of semi-annual payments of an amount m continuing for n years?

  Calculate the expected rates of return for the mutual fund a

Calculate the expected rates of return for the S&P 500 and Mutual Fund A. Calculate the standard deviations for the S&P 500 and Mutual Fund A.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd