Elaborate on the significance of the mode of payment for the stockholders of the target firm and their continued interest in the surviving firm. Specifically, which form of payment retains the stockholders of the target firm as stockholders in the surviving firm? Which payment form receives preferential tax treatment?
Answer to relevant QuestionsList and briefly describe five main career paths open to finance graduates. What are the relative advantages and disadvantages of using sophisticated management compensation packages to align the interests of managers and shareholders? How are corporations taxed on ordinary income? What is the difference between the average tax rate and the marginal tax rate on ordinary corporate income? Assume that a firm’s total assets and sales remain constant. Would an increase in each of the ratios below be associated with a cash inflow, a cash out-flow, or would there be no effect on cash? a. Current ratio b. ...Relate the industry shock theory of mergers to the history of merger waves. What were the motivating factors for increased merger activity in each of the five major merger waves?
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