Takeover risk, Financial Management

Assignment Help:

If the issuer company is taken over, then the bondholders are likely to suffer. It is due to lowering of the stock prices in the market as a post takeover effect. As the stock of the acquired company may no longer trade after a takeover, the investor can be let with a bond that pays a lower coupon rate than comparable risk corporate bonds.


Related Discussions:- Takeover risk

Affect the success of a business in international markets, PIAC was apparen...

PIAC was apparently negatively affected by the safety and health concerns of the EU. With 27 countries raising public concern, PIAC's corporate image is likely to have been spoilt

What do you mean by marketability, Q. What do you mean by Marketability? ...

Q. What do you mean by Marketability? Marketability: The firm must be able to sell its holdings and realize cash as and when required. The securities must be readily marketable

What are the benefits as well as costs of holding inventory, Q. What are th...

Q. What are the benefits as well as costs of holding inventory? What is Inventory? What are the benefits as well as costs of holding inventory? Ans. Inventory: - Every enter

Estimate working capital requirements, Q. Describes Working Capital. Briefl...

Q. Describes Working Capital. Briefly describe the techniques utilized in making working capital forecast or Estimating Working Capital Requirements? Ans:- Meaning of Wo

What is institutional finance, What is Institutional Finance A natio...

What is Institutional Finance A nation's economic structure comprise a number offinancial institutions, like banks, pension funds, insurance companies, creditunions. These i

Marketing, How to use integrated promotional mix to achieve marketing objec...

How to use integrated promotional mix to achieve marketing objectives

Explain the dividends and interest payments, Dividends and interest payment...

Dividends and interest payments Payment  of  dividends  and  interest  can  either  be  demonstrated under financing activities or  under operating activities. Sum of the 3

Securitization, Securitization refers to conversion of illiquid asset...

Securitization refers to conversion of illiquid assets to liquid assets by converting longer duration cash flows into shorter duration ones. Securitization denote

Find the impact of price and trading volume, Purpose of research: The a...

Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".

Write Your Message!

Captcha
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