User Account

All Pages

Prepare the financial statements for your company

Assignment Help Finance Basics
Reference no: EM132288012

Assignment: Business Acquisitions

Use the Internet or Library to research two (2) publicly traded U.S. companies and download their financial statements. Assume that you are the CEO of one of the selected companies. You are responsible for gaining control over the other company. You have three (3) choices, any of which you believe that the Board of Directors will support.

• Choice 1: Your company acquires 35% of the voting stock of the target company.

• Choice 2: Your company acquires 51% of the voting stock of the target company.

• Choice 3: Your company acquires 100% of the voting stock of the target company.

Write a four to five (4-5) page paper in which you:

1. Provide a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over.

2. Specify the overall manner in which the acquisition fits into your company's strategic direction. Next, identify at least three (3) possible synergies that could occur as a result of the proposed acquisition.

3. Select two (2) out of the three (3) choices provided in the above scenario and analyze the key accounting requirements for each of the two (2) choices that you selected. Next, suggest one (1) strategy with which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices.

4. Select the choice that you consider to be the most advantageous to your company. Explain to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company.

5. Assume that two (2) years after the acquisition, your Board of Directors wants to offer the shares back to the public in hopes of making a large profit. Assume that in each of the two (2) years your company and the target company have had the same reported net income as they did in the year of acquisition. Determine the type of value (i.e., cost of fair value) that you would use to report the subsidiary's net asset in the subsidiary's financial statements, which the company will distribute to the public with the public offering. Provide support for your rationale.

6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.

Reference no: EM132288012

Questions Cloud

Find an article that discusses the technology or trend : Select a trend in IT that has been identified in the reading or concept that you are interested in. Find an article that discusses the technology or trend.
What are the various theories of motivation : What is motivation? What factors must be considered in maximizing productivity? What are the various theories of motivation?
Which strategies would be best suited to meet the needs : The New Shoes simulation offers three regions in which your athletic company operates. The foreign region may be an option for your organization.
Define how you might lead and motivate employees : There is no doubt that the American population is growing with different cultures each year. Discuss how you might lead and motivate employees practicing.
Prepare the financial statements for your company : Select two (2) out of the three (3) choices provided in the above scenario and analyze the key accounting requirements for each of the two (2) choices that you.
Project manager to accelerate the project completion : Different options are existing for project manager to accelerate the project completion and short critical path.
Define key benefit and drawback to financial statement users : Compare the key differences between the U.S. GAAP and IFRS positions on both intangible research and development costs and tangible depreciable assets.
Critical path of project-saving money different strategies : Due to shortening the critical path of the project and saving money different strategies could be used.
What is your definition of a gang : What is your definition of a gang? How did you come up with that definition? Was it difficult to define/classify a gang?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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