Which of these motives are financially justifiable

Assignment Help Finance Basics
Reference no: EM13271575

Several factors have been proposed as providing motives for mergers, including (1) synergy, (2) availability of excess cash, (3) ability to purchase assets at less than replacement cost, (4) diversification, and (5) managers' personal incentives.
a. Which of these motives are financially justifiable? Which are not?
b. Which of these motives apply to the proposed acquisition?

Reference no: EM13271575

Questions Cloud

Explain the water calculated is cooled to room temprature : About how much phenacetin will remain dissolved when the water calculated (94ml) is cooled to room temperature
Compute the capitalized equivalent amount : A group of concerned citizens has established a trust fund that pays 6% interest , compounded monthly, to preseerve a historical building by providing annual maintenance funds of $30,000 forever. Compute the capitalized equivalent amount for these..
Develop the c code to drive the motor at full drive level : A DC notor is to be driven with a 20 kHz signal. Using the HCS12 PWM function, develop the c code to drive the motor at approximately 60% of its full drive level. The e clock is 24 MHz. Use channel 0.
How sensitive is the acquisition value to these estimates : A major concern in any DCF valuation is the accuracy of both the terminal (long-term) growth rate and discount rate estimates. How sensitive is the acquisition value to these estimates?
Which of these motives are financially justifiable : Which of these motives are financially justifiable? Which are not?
How much time is required to transmit 10 characters : The HCS112 SPI is configured for 6 Mbaud. Assuming that it takes 1 microsecond to load each character, how much time is required to transmit 10 characters
Explain the final dilution obtained after each dilution : What is the final dilution obtained after each dilution series shown below? Express each answer in exponential numbers.
Which can be found in the apa style guide : Write a 500-word summary to accompany your matrix explaining the significance of understanding the differences between fixed income and common stock securities in terms of providing sound financial management for a corporation.
Determine the distribution strategy : You will now consider mechanisms by which your customers will purchase your products and / or services (e.g., online, storefront, direct sells) and the primary manner in which you intend to reach new customers (e.g.,TV, radio, social media, sp..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the second deposit amount

Suppose you want to purchase a new ski boat two years from now, and you plan to save $8,200 per year, starting one year from today. You will deposit your savings in an account that pays 6.2% interest.

  Preferred stock financing

ABC Company plans to control the cost of its capital and decides that the weighted average cost of capital, WACC, should be around 12 percent. ABC also has a target capital structure of 50% common stock.

  At what price would there be a margin call

A futures contract covers 5000 pounds with a minimum price change of $0.01 is sold for $31.60 per pound. If the initial margin is $2,525 and the maintenance margin is $1,000, at what price would there be a margin call?

  Calculate the basic and diluted eps for 2013

Net Income: $1,200,000 & tax rate is 40%. Calculate the basic and diluted EPS for 2013. Are there any dilutions, if any, in this equity structure?

  Compare and contrast traditional and roth iras

Compare and contrast traditional and Roth IRAs. Based on your comparison, which one do you think is a better vehicle for retirement saving? Does your determination depend on age, income level, tax bracket, etc?

  Which one should be chosen based on the npv

What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Round answers to 2 decimal places, e.g. 15.25.)

  Why th results are different at the different interest rate

whythe results are different at the different interest rates.

  What would be the percentage change in the price

Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three years to maturity, whereas Bond Dave has 20 years to maturity.

  What is the standard deviation of these returns

A stock has yielded returns of 6 percent, 11 percent, 14 percent, and -2 percent over the past 4 years, respectively. What is the standard deviation of these returns?

  Income statement

I need to figure out the statement of retained earnings. I have earnings end of year, 12,979 revenues 25,329, net interest expense, 453 income taxes 853 other income net 137 dividends paid.

  What is the total opportunity cost for a month

There is a constant rate of cash disbursement and no cash receipts during the month. What is the total opportunity cost for a month based on the firm's current practice?

  Should the firm accept or reject the project

If Yurdone requires a return of 10 percent on such undertakings, should the firm accept or reject the 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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd