Reasons for merger that will result in wealth maximization are strategic benefits, market power, economics of scale, economies of vertical integration and taxation benefits”. Describe how any four out of the five factors mentioned may contribute to the success of a merger business exercise

Q: When you think of a successful company in our country (a bank, airlines or a tourism company), how…

A: Merger and Acquisition is one of the strategy adopted by a successful company to expand business not…

Q: Compare the first step in the valuation process of an established company and a high-growth company.…

A: Valuation Process: Calculating the fair worth of an item or a company is done quantitatively via the…

Q: Explain research and development purchase in business acquisitions.

A: Research & Development is a process by which a business obtains new knowledge and uses it to…

Q: Direction:  discuss how the following models are used.

A: Valuation model: Valuation models are the model that is adopted by the company to know the value of…

Q: Explain when diversification is an effective business strategy.

A: Diversification, simply, means to increase profit by higher sales through a new variety of products…

Q: Give at least 3 examples of businesses who had undergone merger or consolidation. It can be…

A: Merger and consolidation are two similar terms used in business and finance to describe the…

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing…

A: A company or a corporate entity or an organization can diversify and grow using different…

Q: What actions/measures will the company take in order to accomplish the company’s strategic growth?

A: Company’s growth strategy allows companies for expansion of their business. It can be achieved by…

Q: 8. During the post-merger integration of two companies, which of the following activities support a…

A: Answer- Option (e) All of the above will be the most viable option.

Q: what factors to consider within the cost/benefit analysis when deciding about joint…

A: Strategic alliance is referred to an arrangement, which is between two corporations in order to…

Q: When intending to establish a new company, have a strategy for financing your venture.

A: Answer: When any new company is established to start the ideas into reality, finance and funding is…

Q: Which of the following is a financial synergy?

A: Due to synergies from mergers and acquisitions improve their debt capacities. Low cost of capital.

Q: Internal benchmarking is optimal for companies which?a) Have a diverse platform of wholly owned…

A: Option C. Have a range of similar subsidiaries, producing similar products at similar market…

Q: List and Explain of 4 (four) types of the diversification strategy in Corporate-level strategies.…

A: A business organization, entering into a new market where they do not have business with and create…

Q: 1. Based on the work of MM Propositions, why are levered firms  usually more valuable than an…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following statements is true about goodwill? а. Goodwill may be recorded when the fair…

A: SOLUTION GOODWILL IS AN INTANGIBLE ASSET THAT IS ASSOCIATED WITH THE PURCHASE OF ONE COMPANY BY…

Q: ommon mistake that can occur in valuing a target would be: Group of answer choices Applying the…

A: When the company acquired another company than both are mixed to become one company but there should…

Q: Transfer pricing is a significant area of concern for taxing authorities and multinational entities…

A: The terms and procedures for pricing transfers both within and between businesses that share…

Q: Explain why firms undertake acquisitions.

A: Acquisitions refer to the process by which one company or business entity purchases another company…

Q: Identify which one of the following is falling under the meaning of goodwill? a. The present value…

A: Goodwill is defined as the present value of the firm's anticipated excess earnings .. It falls under…

Q: Consider a large banking group with businesses in retail banking, equity trading, and mergers and…

A: 1. Mergers and acquisitions (M&A) Businesses usually consider price/earnings multiple for…

Q: Green Street Advisors stresses the importance of qualitative elements in their discussion of REIT…

A: Equity REITs are sort of real estate companies. These companies own or manage income producing…

Q: The report should contain the following : -Introduction about the banks -Reasons for merger -…

A: The bank is a financial institution that helps in wealth creation through investments. Also, banks…

Q: Do mergers create value? If so, who profits from this value?

A: The merger means a combination of two (or) more companies to create a synergic effect. There might…

Q: "the basic rationale for the objective of shareholder wealth maximization is that it that it…

A: Business has some objectives and responsibilities towards the stakeholders, mainly investors because…

Q: Which of the following statements is true about goodwill? O a. Goodwill may be recorded when it is…

A: Goodwill is recorded when one company acquires another in a business combination and amount of…

Q: Discuss the underlying theories and empirical evidence on the value creation from horizontal…

A: A Horizontal Merger happens when organizations working in something very similar or comparable…

Q: Perform an analysis of the impact of “incentive ownership” on the proportion of share ownership and…

A: Equity shares represent the capital of the company. The equity shareholders are considered the…

Q: If the sources of synergy is economy of scale in COGs, which of the following statements is true?…

A: Synergy is a crucial concept in mergers and acquisitions (M&A). It represents the additional…

Q: friend who knows you study accounting approaches you to discuss share market investment strategies.…

A: Investing in the share market is quite risky and complex so there is need of understanding of market…

Q: What are the five categories of businesses based on level of diversification? Define each and…

A: Diversification, simply, means to increase profit by higher sales through a new variety of products…

Q: Q1. Based on the work of MM Propositions, why are levered firms usually more valuable than an…

A: Concept of Capital Structure theory  MM Approach

Q: Discuss the validity of risk diversification as a motivation for companies engaging in merger and…

A: Introduction : In simple words, when two companies join their operations to work together it is…

Q: Transfer pricing is a significant area of concern for taxing authorities and multinational entities…

A: Transfer price: The price charged for the goods and services transferred among the divisions are…

Q: Suppose you are the CEO of a large firm in a service business and you think that by acquiring a…

A: Value chain analysis is a tool used by companies in order to identify its primary & support…

Q: Question1.  Both Berkley and Oakley are large public corporations with subsidiaries throughout the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain briefly the purpose of Valuation

A: Introduction:- The Companies (Registered Valuers and Valuation) Rules, require registered valuers to…

Q: A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a:…

A: Lets understand the basics. Market extension merger is a merger in which one entity taget another…

Q: a. Derive the four-firm concentration ratio b. Derive the HHI. c. Derive the effect of a merger…

A: Information Provided: Market Shares = 40, 15, 15, 10, 5, 5, 5, 5

Q: Methodologies to assess risks and benefits associated of Mergers and Acquisitions

A: Mergers and acquisitions refer to two different concepts. Merger means the process in which two…