Please answer each question situation with a description of the correct answer along with relevant points,...

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Please answer each question situation with a description of the correct answer along with relevant points, description, and examples. Question (A). In the context of the shareholder wealth-maximization model of a firm, what is the expected impact of each of the following events on the value of the firm? Situation 1. New foreign competitors enter the market. Situation 2. Strict pollution control requirements are implemented by the government. Situation 3. A previously non-union workforce votes to unionize. Situation 4. The rate of inflation increases substantially. Situation 5. A major technological breakthrough is achieved by the firm, reducing its costs of production. Question Question (B). How would each of the following actions be expected to affect shareholder wealth? Situation 1. RJR Nabisco sells its Del Monte division for over Monte division for over $1 billion. Situation 2. Ford Motor Company pays $2.5 billion for Jaguar. Situation 3. General Motors offers large rebate to stimulate sales of its automobiles. Situation 4. Rising interest rates cause the required returns of shareholders to increase. Situation 5. Import restrictions are placed on the Japanese competitor laced on the Japanese competitors of Chrysler. Situation 6. There is a sudden drop in the expected future rate of inflation. Situation 7. A new, labour-saving machine is purchased by Wonder Bread and results in the layoff of 300 employees. Please answer each question situation with a description of the correct answer along with relevant points, description, and examples. Question (A). In the context of the shareholder wealth-maximization model of a firm, what is the expected impact of each of the following events on the value of the firm? Situation 1. New foreign competitors enter the market. Situation 2. Strict pollution control requirements are implemented by the government. Situation 3. A previously non-union workforce votes to unionize. Situation 4. The rate of inflation increases substantially. Situation 5. A major technological breakthrough is achieved by the firm, reducing its costs of production. Question Question (B). How would each of the following actions be expected to affect shareholder wealth? Situation 1. RJR Nabisco sells its Del Monte division for over Monte division for over $1 billion. Situation 2. Ford Motor Company pays $2.5 billion for Jaguar. Situation 3. General Motors offers large rebate to stimulate sales of its automobiles. Situation 4. Rising interest rates cause the required returns of shareholders to increase. Situation 5. Import restrictions are placed on the Japanese competitor laced on the Japanese competitors of Chrysler. Situation 6. There is a sudden drop in the expected future rate of inflation. Situation 7. A new, labour-saving machine is purchased by Wonder Bread and results in the layoff of 300 employees.