Log in
Finance
1
answer
0
watching
447
views

Empirical evidence indicates that the returns to shareholders of the target firm vary significantly from the returns to the shareholders of the acquiring firm. Identify the shareholders that tend to realize the smaller return and provide some possible explanation for these low returns.

Watch
1
answer
0
watching
447
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jean Keeling
Jean KeelingLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

A host of empirical evidence indicates that the gains from a typical merger accrue to the shareholders of the target corporation, not to the shareholders of the acquiring corporation. It seems the acquiring corporation should be in the "driver’s seat" in a typical merger.

Apple recently acquired Beats. please share your thoughts regarding this in light of this recent acquisition.

A.) A host of empirical evidence indicates that the gains from a typical merger accrue to the shareholders of the target corporation, not to the shareholders of the acquiring corporation. It seems the acquiring corporation should be in the "driver’s seat" in a typical merger. Why don’t their shareholders benefit? What do you think typically goes wrong to cause this result? Elaborate and Explain Please

B. The order of priority of claims in liquidation is firmly established in legal precedent. As depicted in Table 18.9 of the textbook, common shareholders are last in priority. Yet, in bankruptcy negotiations, creditors (who have a relatively high priority) often give up their debt in exchange for shares of common stock, whose claim on liquidation proceeds are last on the list. Why might they do this? Do you believe it is a good idea? Explain.

Which of the following parties, according to academic research, is the less likely to benefit from takeover activity?

a)Merchant banks and other financial institutions.

b)Target company shareholders.

c)Acquiring company shareholders.

d)Management of the acquiring company.

A company wants to return funds without signalling that all future dividends will be raised abnormally. Which of the following is the simplest method to adopt?

a)Interim dividends.

b)Special dividends.

c)Share buy-backs.

d)Scrip dividends.

*(I think its D for both questions, but I still doubt it)*

correct me if I'm wrong, but if I'm right please elaborate more on the answers.

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in