Spun-off from parent often immediately put antitakeover

Assignment Help Financial Management
Reference no: EM13811663

Why do businesses that have been spun-off from their parent often immediately put antitakeover defences in place?

Reference no: EM13811663

Questions Cloud

What is the relationship of object model to data structure : What are the reasons for object orientation? What is the relationship of the object model to the data structure
Most indicative of a flexible short-term financial policy : Which one of the following is most indicative of a flexible short-term financial policy?
Spin-off on the long-term value : Describe how you, as an analyst, would estimate the potential impact of the Huntingdon Ingalls Industries spin-off on the long-term value of Northrop Grumman’s share price?
How do value chain principles apply to system analysis : What are the major differences between functional and process-based structures? How do value chain principles apply to system analysis
Spun-off from parent often immediately put antitakeover : Why do businesses that have been spun-off from their parent often immediately put antitakeover defences in place?
Assignment on analyzing a social policy : Analyzing a Social Policy
What is the likely impact of the spin-off : What is the likely impact of the spin-off on Northrop Grumman’s share price immediately following the spin-off of Huntingdon Ingalls assuming no other factors offset it?
Examples of being unrealistic in a business systems analysis : What impact does lack of previous research have on the analysis of a business situation? What are examples of being unrealistic in a business systems analysis? How does ignorance of corporate culture impact the analysis of a business situation
What will the annual cash flow be : If you put up $41,000 today in exchange for a 6.75 percent, 14-year annuity, what will the annual cash flow be?

Reviews

Write a Review

Financial Management Questions & Answers

  Explain what does the market believe will be the stock price

The dividend is expected to grow at some constant rate g, the stock currently sells for $33 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e.,what is P^3)?

  Expect to receive for the rights to the fund

Tommy's grandparents have left him a trust fund that will pay him $9,000 a year for eighteen years once he turns twenty one, which is five years from today. Tommy would prefer to have the cash today for a new car, a new snowboard, a season's ski pass..

  Investment opportunity-expected to produce cash flows

Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €1.8 million in Year 1, €2.6 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is $1.36/€..

  Task is to analyze two mutually exclusive projects

Your task is to analyze two mutually exclusive projects: Using the payback criterion, which investment should you chose? Why? Using the discounted payback criterion, which investment should you chose? Why? Using the NPV criterion, which investment sh..

  Yield to maturity-current yield and capital gains yield

A bond sold five weeks ago for $1,100. The bond is worth $1,050 in today’s market. Assuming no change in risk, which is greater than the other among the following three variables: (i) yield to maturity; (ii) current yield; and (iii) capital gains yie..

  Annual expected rates of inflation

Suppose that the annual expected rates of inflation over each of the next five years are 5 percent, 6 percent, 9 percent, 13 percent, and 12 percent, respectively. What is the average expected rate of inflation over the 5-year period? Use the arithme..

  How many shares will the firm issue

A firm currently has equity with a market value of $600,000,000 and debt with a market value of $500,000,000. The firm has 10,000,000 shares outstanding. The bonds offer investors a return of 8%. The firm is contemplating issuing $300,000,000 in new ..

  Bidding to provide web hosting services

Hassle-Free Web is bidding to provide web hosting services for hotel Lisbon. Hotel Lisbon pays its current provider $10,200 per year fo hosing its web page, handling transactions. Hassle-Free figures that it will need to purchase equipment worth $14,..

  Target capital structure-cost of debt and cost of equity

A company has a target capital structure of 60% debt and 40% equity and the tax rate is 34%. If the cost of debt is 8%, and he cost of equity is 12%, what is WACC of the company at its target capital structure?

  Question 1a stock price is currently 100 it is known that

question 1a stock price is currently 100. it is known that in one year it will be either 146 or 80. the risk-free rate

  What is the expected return of the two asset portfolio

An investor wants to form a two asset portfolio consisting of Treasury bills with a return of 1.5% and a risky portfolio with a risk premium of 12.7% and a standard deviation of 22%. The investor wants the standard deviation of the two asset portfoli..

  Calculate the amount of the firms after tax cash flow

Moby Dick Corporation has sales of $4,635,480 income tax of $400,651; the selling general and administrative expenses of $294,228; depreciation of $395,852; cost of goods of $2,543,550; and interest expense of $188,723. Calculate the amount of the fi..

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