What are the implications to GE

Assignment Help Accounting Basics
Reference no: EM133028880

Question - General Electric commenced an offer to exchange GE common stock for common stock of Synchrony Financial presently owned by GE. This exchange offer is in connection with the previously announced separation of Synchrony, the largest provider of private label credit cards in the United States, from GE. The exchange offer is expected to conclude the week of November 16, 2015. The exchange offer is designed to provide GE shareholders an opportunity to exchange their shares of GE common stock for shares of Synchrony common stock at a 7% discount, subject to an upper limit of 1.1308 shares of Synchrony common stock per share of GE common stock.

Required -

This transaction is a split-off. How do we know?

How will the proposed split-off affect the number of GE shares outstanding?

Given the details revealed in the news article, does the split-off appear to be pro-rata or non pro-rata?

What are the implications to GE if the split-off is non pro-rata?

Reference no: EM133028880

Questions Cloud

Identify risks associated with the scenario : Identify the challenge within the context, current strategies and gaps and Provide informed summary and actionable steps to resolve the challenges
How much net income would Parri report for July : Paid $6,000 covering the next six months of rent (July - December). How much net income would Parri report for July
What amount of current assets would overton report : Each of the following accounts for Overton, Corp. has a normal balance: Accounts receivable $12,300. What amount of current assets would Overton report
Salary structuring of the philippine government : 1. Mr. Abrenica is an HR Manager for XYZ Merchandising Company. The company aims to expand its business operations and are planning to reach more markets within
What are the implications to GE : How will the proposed split-off affect the number of GE shares outstanding? What are the implications to GE if the split-off is non pro-rata
Prepare a contribution format income statement : Assume that the company expects to sell 20,000 units next month. Prepare a contribution format income statement, assuming that operations are automated
Do they promote unethical behaviors among doctors : Do you agree that it is a good idea to offer incentives to doctors for better patient care? What are the drawbacks? can these problems be awoided?
Explain the variations on the calculations of these values : What considerations are made when determining which method you use to calculate present and future values and Explain the variations on the calculations
Develop a performance appraisal method : Rahman is a newly appointed HR manager at Grand Sultan Company. After spending several weeks on the job, Rahman was surprised to discover that his father Alam,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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