Long-term financial management decisions

Reference no: EM1344267

About 67% of the acquisitions of other companies result in losses to the acquiring firms stockholders. Since it is well documented that most acquisitions are financial failures, why do firms continue to purchase other firms?

Are they simply paying too much for the acquired firm? A co-worker asks you what you think. Outline your thoughts. Specifically state the reasons for your argument.

Reference no: EM1344267

Questions Cloud

Explain why might industries with high fixed costs inclined : Explain why might Industries in industries with high fixed costs be inclined to prevent strikes or end strikes quickly.

Find all operating expenses : The current grill is being depreciated straight line over its useful life of 10 years after which it will have no salvage value.

Acquisition of bank in developing nation : Explain the issues and risks involved with a financial institution acquiring a bank in an emerging market.

Calculate the abnormal rates of return : Calculate the abnormal rates of return for the following stocks during period t (ignore differential systematic risk):

Long-term financial management decisions : About 67% of the acquisitions of other companies result in losses to the acquiring firms stockholders. Since it is well documented that most acquisitions are financial failures, why do firms continue to purchase other firms?

Calculate future value of the investment : A grandmother want a plan to finance her new grandchild's college education. She has $62,000 to invest. Search the internet & locate a long-range investment CD, Savings Bond, plan, etc, for the grandmother.

Show what are the different categories of hedge funds : How does the risk of short-term funds differ from the risk of long-term funds and What are the different categories of hedge funds?

Compute the unemployment rate as the us bureau : The nation of Wrexington utilizes the same method to Compute the unemployment rate as the U.S. Bureau of Labor Statistics utilizes. From the data below, Compute Wrexington's unemployment rate.

Prepare journal entries for acquisition : Penny's Concrete acquired 25% of outstanding common stock of Cardinal Inc on January 1, 2005, by paying $1,200,000 for 50,000 shares.

User Account

All Pages