Identify the shareholder that tend to realize smaller return

Assignment Help Finance Basics
Reference no: EM131970458

Question: Empirical evidence indicates that the returns to shareholders of the target firm vary significantly from the returns to the shareholders of the acquiring firm. Identify the shareholders that tend to realize the smaller return and provide some possible explanation for these low returns.

Reference no: EM131970458

Questions Cloud

What would be the outstanding balance after payment : The 10 payments are made annually starting with the inception of the lease. What would be the outstanding balance after payment #10?
Evidence of association between color and texture : A qualitative assessment of both texture and color is made with the following results. Is there evidence of association between color and texture for these lime
What is one share of the stock worth to you : Emily's Boutique of Ottawa recently paid $1.65 as an annual dividend. Future dividends are projected at $1.72, $1.82, $1.86, and $1.90 over the next four years.
How much of the payment is taxable : Lindsey has a bought a $500,000 life annuity. Her life expectancy is 25 years. Her annual payments $30,000 a year.
Identify the shareholder that tend to realize smaller return : Identify the shareholders that tend to realize the smaller return and provide some possible explanation for these low returns.
What would be the optimal number of contracts for refiner : A refiner for the next two months has exposure to 3.562 million gallons of ethanol. What would be the optimal number of contracts for the refiner to hedge with?
Calculate weekly returns on the benchmark portfolio : Your performance is to be evaluated against a benchmark that consists of a 60% investment in the S&P500 index and 40% in cash.
Confidence interval for the slope : Statistics Help. For the X,Y data below, compute: a. r and determine if it is significantly different from zero.
Calculate the total equivalent units of production : Conversion costs are added equally throughout the refining process. Calculate the total equivalent units of production for direct materials.

Reviews

Write a Review

Finance Basics Questions & Answers

  Would it be costly credit, or would some be free

Why is some trade credit called free while other credit is called costly? If a firm buys on terms of 2/10, net 30, pays at the end of the 30th day, and typically shows $300,000 of accounts payable on its balance sheet, would the entire $300,000 be fr..

  Major principles of the study

The time value of money concept is one of the 3 major principles of the study and practice of financial management. It is used to evaluate potential investments, determine a rate of return on a project, calculate the required payments on a loan or..

  Determining the surviving spouse

How much federal estate tax would the surviving spouse have to pay, assuming that the estate is taxed at the 45 percent rate?

  Calculate next year ending receivables balance

Receivables are currently $15M on credit sales of $120M Credit sales are expected to grow by 20% next year. Calculate next year's ending receivables balance (make calculations using ending balances and a 360 day year).

  Weighted average cost of capital of the company

Mr. Kilunda, the managing director of the company is wondering whether to invest in a project which would cost Kshs. 20 million and yield Kshs. 3.8 million a year before tax in perpetuity. The project has an estimated beta value of 1.25. The rate ..

  What is the approximate balance in accounts receivable

CornProducts Corp. ended the year 2013 with an average collection period of 40 days. The firm's credit sales for 2011 were $9 million.

  Ability to increase or reduce the money supply

Why are financial institutions heavily regulated, with specific focus on their ability to increase or reduce the money supply?

  Compute altman z score for best buy and circuit city

Compute Altman's Z-score for Best Buy and Circuit City for 2007 and 2008. How did the bankruptcy risk of Best Buy change between 2007 and 2008? Explain. How did the bankruptcy risk of Circuit City change between 2007 and 2008? Explain.

  Calculate profitability and liquidity measures presented

calculate profitability and liquidity measures presented here are the comparative balance sheets of hames inc. at

  Calculation of npv & irr of uneven cash flows

Calculation of NPV & IRR of uneven Cash Flows and Comparing NPV & IRR between two Investment options.

  What is the percentage change in thee bond price

If the interest rate suddenly falls by 2%/rise by 2% , what is the percentage change in thee bond price. What does it tell about the interest rate risk of longer term bonds.

  Is manufacturing overhead underapplied or overapplied for

company is a manufacturer that uses job-order costing. on january 1 the beginning of its fiscal year the companys

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