1. Define the following terms: a. Merger b. Consolidation c. Holding company 2. Describe some of...

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1. Define the following terms: a. Merger b. Consolidation c. Holding company 2. Describe some of the measures used by companies to discourage unfriendly takeover attempts. 3. What is the difference between an asset purchase and a stock purchase? 4. What is the difference between an operational restructuring and a financial restructuring? 5. Discuss the differences between the following types of mergers: a. Horizontal mergers b. Vertical mergers c. Conglomerate mergers 6. What are some of the reasons why firms merge with other firms? 7. What methods do financial analysts use to value merger candidates? What are the limitations of each method? 8. Explain what happens to the postmerger earnings-per-share figure when a company with a relatively high P/E ratio acquires a company with a lower P/E ratio, assuming that the exchange ratio is based on current stock market prices and no synergy exists. 9. What are the differences between the purchase method and the pooling of interests method of accounting for mergers? 1. Define the following terms: a. Merger b. Consolidation c. Holding company 2. Describe some of the measures used by companies to discourage unfriendly takeover attempts. 3. What is the difference between an asset purchase and a stock purchase? 4. What is the difference between an operational restructuring and a financial restructuring? 5. Discuss the differences between the following types of mergers: a. Horizontal mergers b. Vertical mergers c. Conglomerate mergers 6. What are some of the reasons why firms merge with other firms? 7. What methods do financial analysts use to value merger candidates? What are the limitations of each method? 8. Explain what happens to the postmerger earnings-per-share figure when a company with a relatively high P/E ratio acquires a company with a lower P/E ratio, assuming that the exchange ratio is based on current stock market prices and no synergy exists. 9. What are the differences between the purchase method and the pooling of interests method of accounting for mergers?

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1 Definitions a Merger A merger is a corporate strategy involving the combination of two or more companies into a single entity with one company typically absorbing the others Its a legal consolidatio... View the full answer