Many large banks issued billions of dollars of trust preferred stock until the financial crisis of 2008. Why did banks more so than, say, manufacturing firms appear to like trust preferred stock as a source of capital?
Answer to relevant QuestionsWhen a corporation repurchases shares of its stock from investors, do individual shareholders generally prefer the repurchase to be treated as a dividend for tax purposes or do they prefer it to be treated as a sale? What do ...What key tax factors are most influential in mergers and acquisitions? Are mergers and acquisitions unique in their tax consequences? What are the main tax considerations in the sale of a target’s stock to a purchaser? Walkers is planning to acquire Cayman Bank, a freestanding C corporation, in expectation that new management can be brought in to achieve substantial operating efficiencies. You have been retained to advise Walkers on how to ...Assume you are performing a comparable company analysis for a pending acquisition. You are advising the target company and the target company is a privately held S corporation. The comparable company acquisitions, for which ...
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