What characteristics surrounding a merger would lead you to conclude that it is motivated by value-maximizing managers rather than non-value-maximizing managers? What actions could directors or stockholders take to prevent non-value-maximizing mergers?
Answer to relevant QuestionsList the five basic corporate finance functions. What is the general relationship among them? Can there be a difference between profit maximization and shareholder wealth maximization? If so, what could cause this difference? Which of the two should be the goal of the firm and its management? If you wanted to expand your operations into a foreign country with nebulous laws and an unstable political climate, would you favor internal or external expansion? Why? What is the purpose of classifying mergers by degree of business concentration? Why do you think these classifications have changed over time? 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 ...
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