21 Which of the following would best describe a stock acquisition? Group of answer choices ABC Company + DEF Company = ABC Company and a Subsidiary ABC Company + DEF Company = XYZ Company ABC Company + DEF Company = ABC Company None of the choices
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- Which of the following would best describe a stock acquisition? ABC Company + DEF Company = ABC Company None of the choices ABC Company + DEF Company = ABC Company and a Subsidiary ABC Company + DEF Company = XYZ Companywhy a specific company would purchase the stock of another and provide an exampleWhich of the following methods of valuing shares will be most appropriate for a prospective investor who intends acquiring controlling interest in a target company?A Earnings YieldB Dividend YieldC Net assetsD Accounting Rate of Return
- ._______ An offer to purchase the stock of a firm targeted for acquisition.Which of the following costs of a business combination can be included in the value charged to paid-in-capital in excess of par? direct and indiırect acquisition costs O direct acquisition costs direct acquisition costs and stock issue costs if stock is issued as consideration stock issue costs if stock is issued as considerationQuestion : Please examine, analyze, present (incl. in tables and charts) and explain your answers on the following:1. What is the strategic rationale/logic of Covestroís management to engage in this acquisition? (Summarize in a few short bullet points.)2. Examine Covestroís share price graph from Jan 2017 until today i.e. Nov 2021.(a) Describe and explain your observations and speculate/try to rationalize the share price movements, dividing them into four periods: early 2017 until peak in early 2018; 2018 until March2020; between March and Sep 2020; and from Oct 2020 until Oct 2021. Make use of newscommentaries and Covestroís annual and quarterly Önancial reports.1(b) Do the equity markets view the DSM RFM acquisition positively?
- Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Shares outstanding Price per share Firm B 5,400 $53 Firm T 1,300 $23 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $7,900. a. If Firm T is willing to be acquired for $25 per share in cash, what is the NPV of the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If Firm T is willing to be acquired for $25 per share in cash, what is the merger premium? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for…Which of the following statement about a rights issue is correct? a. The share price can be expected to increase on the ex-rights date b. On the ex-rights date the rights separate from the share c. The subscription price is usually greater than the market price d. A rights issue is offered to an investor whether they are an existing shareholder or not e. If you buy shares cum-rights you are not entitled to participate in the rights issue9. Multiple Choices The corporation has the option to repurchase the preferred stock at a specified price. a. redeemable b. cumulative c. convertible d. compound e. callable f. treasury
- 3. Analyze Estee Lauder's buybacks before and after COVID-19 (2015-2022) with specific data. require: a.provide the data of Estee Lauder's share buybacks from 2015 to 2022 b.what share buybacks the company is proposing in what circumstances, and analyze the reasons. c.whether Estee Lauder have changed share buybacks after COVID-19 and the reason.17. Share options are measured at a. settlement date b. grant date c. each reporting date d. financial measurement dateWhich of the following correctly indicates how the issue price of common stock shares would be valued when a corporation makes a follow-on issue? Market forces determine the selling price, as it is marketed by the selling group The highest expected issue price per share that can be obtained while still selling of all of the shares is selected The highest expected issue price per share that can be obtained, regardless of the selling group's ability to market the shares, is selected The market price of existing shares is used as guidance