Explain why diversification per se is probably not a good reason for merger.
Question:
Explain why diversification per se is probably not a good reason for merger.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (11 reviews)
Diversification doesnt create value in and of itself because diversification reduces unsystem...View the full answer
Answered By
Emel Khan
I have the ability to effectively communicate and demonstrate concepts to students. Through my practical application of the subject required, I am able to provide real-world examples and clarify complex ideas. This helps students to better understand and retain the information, leading to improved performance and confidence in their abilities. Additionally, my hands-on approach allows for interactive lessons and personalized instruction, catering to the individual needs and learning styles of each student.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Corporate Finance questions
-
1. If the employer has a good reason for firing an employee (absenteeism) and a bad reason (union activity), should the employer be allowed to prove the weight given to both before being found guilty...
-
Diversification is good for shareholders. So why shouldnt managers acquire firms in different industries to diversify a company?
-
Why would silver and brass probably not be a good choice of metals for a bimetallic strip (leaving aside the question of the cost of silver)? (See Table 13.2 .) Material...
-
In the United States, the production of ethanol fuel from corn is subsidized. Use bid rent function analysis to suggest what effects this subsidy might be expected to have on land use.
-
Discuss whether, and if so how, joint process costs should be shared among joint products. (Assume that no further processing is required after the split-off point.)
-
2. Discuss two (2) of the four Functional-level strategies (Efficiency,Quality,Innovation,Customer Resp.) - what each is, how it creates customer value and contributes to sustainable competitive...
-
Snow coming. A meteorologist, predicting above-average snowfall this winter, says, First, in looking at the past few winters, there has been belowaverage snowfall. Even though we are not supposed to...
-
An investor sells a stock short for $36 a share. A year later, the investor covers the position at $30 a share. If the margin requirement is 60 percent, what is the percentage return earned on the...
-
and the market returns. Use the SP 5 0 0 i Project Each member of the class is encouraged to become part of a study group consisting of two to four students. This group will work together and prepare...
-
Explain why it would be incorrect to calculate the experimental ground-state energy of lithium by taking - (E2s + 2E1s), where E2s is the experimental energy needed to remove the 2s electron from...
-
Indicate whether you think the following claims regarding takeovers are true or false. In each case, provide a brief explanation for your answer. a. By merging competitors, takeovers have created...
-
In July 2011, fast food restaurant chain Wendys/Arbys announced that it had sold its Arbys restaurants and would change its name back to Wendys. Arbys was purchased by the private equity firm Roark...
-
Explain the difference between the secondary and tertiary structure of a protein.
-
For the demand equation, express the total revenue R as a function of the price p per item. R(p) q=-6p+ 600 Sketch the graph of the resulting function. 20000 19000 18000 17000 16000 O 15000 14000...
-
Kosovski Company is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and repeatable. The WACC is 11.50%. Year: 0 1 2 3 4 CF for S:...
-
What is among the most important things you should do in a negotiation? What is among the most important things you should do in a negotiation? Try to get your way on as many issues as possible. Find...
-
analyze the following column values and answer question: Value Value Label Frequency Percentage Weighted Percentage 1 - 87 Number of children Notes: _ _ = Number of children 113,819 25.78 36.41 88...
-
Reflect on the following questions. Post your response to the discussion board. Post your discussion post by Thursday . 1 peer response due by Sunday. This discussion has two parts: 1) Mediators and...
-
The Kaufman Car Company sells cars with a warranty that they will work properly. Based on its historic experience, it expects the cost of honoring this warranty to be about 1% of sales. In 2014, it...
-
31. What is the income that can be received over 15 years from $500,000 earning 6% annually? 32. What is the semiannual payment required to retire $50,000 in debt over 5 years at 8% compounded...
-
What is a possible explanation for IPO underpricing?
-
IPO Under pricing in 1980, a certain assistant professor of finance bought 12 initial public offerings of common stock. He held each of these for approximately one month and then sold. The investment...
-
IPO Under pricing in 1980, a certain assistant professor of finance bought 12 initial public offerings of common stock. He held each of these for approximately one month and then sold. The investment...
-
Rights Offerings Rebel, Inc. is proposing a rights offering. Presently there are 400,000 shares outstanding at $75 each. There will be 70,000 new shares offered at $70 each. a. What is the new market...
-
Chapter o Homew ebook 50,000-unit production quantity: $ 227,049 7 70,000-unit production quantity: $ 66,751 d. In addition to mean profit, what other factors should FTC consider in determining a...
-
Diamond makes downhill ski equipment. Assume that comic has offered to produce ski poles for Diamond for $20 per pair Diamond needs 200,000 pairs of poles per period Diamond can only avoid 5150,000...
-
17? Which of the following statement is true Select one: a. All evidence must have the same level of reliability b. All evidence must have the same level of persuasiveness C. All are false d....
Study smarter with the SolutionInn App