Many a corporate merger is made with the motive of increasing growth. What does this growth refer

Question:

Many a corporate merger is made with the motive of increasing "growth." What does this growth refer to? Can you increase growth without increasing the overall risk of the surviving company?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

See More Books

Question Posted: Dec 07, 2015 05:56 AM

See More Questions

A merger boom comparable to those of the 1960s and mid-1980s occurred in the 1990s and into the new century. The merger activity of the 1960s was associated with increasing stock prices and heavy use...
DaimlerChrysler for East Asia (Case #34, Notes) Overview As observed in a short period of time DaimlerChrysler's Schrempp has enacted several strategic moves that, among other things, on paper...
With greater frequency, organizations are issuing corporate social responsibility (CSR) reports that describe how they are engaging in socially responsible activities. Many believe that users will...
A rectangular plate lying on the xy plane has sides 2 in the x direction and in the y direction, thickness h in direction z, and is made of a material with Young's modulus E, Poisson's ratio v, and...
In the study of Example 15.1, independent random samples of six advertisements from True Confessions, People Weekly, and Newsweek were taken. The fog indices for these advertisements are given in the...
Merck & Co., Inc. is a global, research-driven pharmaceutical company that discovers, develops, manufactures, and markets a broad range of human and animal health products. The following are excerpts...
The optimal quantities of products and the necessary quantities of labor and materials. LO.1
1. Why did Tescos initial international expansion strategy focus on developing nations? 2. How does Tesco create value in its international operations? 3. In Asia, Tesco has a long history of...
a. Select Create (+) icon > Transfer b.Select Transfer Funds From: Savings c. Select Transfer Funds To: Checking d. What is the Balance in the Savings Account? (Answer this question in the table...
The speed control of a high-speed train is represented by the system shown in Figure AP5.4 [17]. Determine the equation for steady-state error for K for a unit step input r(t). Consider the three...
Both Company X and Company Y have considerable variability in their earnings, but they are in unrelated industries. Could a merger of the two companies reduce the risk for shareholders of both...
Why is it that so many acquisition opportunities look good before the merger but later prove to be "dogs"?
Advisory services for project finance initiatives: a) Are inextricably related to the aspects of the financing b) Require huge amounts of capital c) Can be provided by parties other than financial...
The COVID pandemic has created a crisis for many restaurateurs. The author of one of this week's readings has a suggestion that he thinks could help restaurants survive the crisis. Read the article...
Evidence is used to make a decision whenever the decision follows directly from the evidence (Tingling & Brydon, 2010). This is where so many people get it wrong or going by their personal beliefs or...
Pick 2 countries, find the price of a Big Mac in each country (if you want to pick another good/service, go ahead), express the price in the local currency, then with the help of exchange rate,...
Your task is to educate the public about the role of the Fed in the economy. Role: You are an economic issues reporter for PBS. Audience: Television audience of The Newshour on PBS Situation: Your...
Trade Queens Limited is a highly successful FMCG in Zambia. Salient points from the Year-end report indicate the following: Operating profit for the 2022 financial year is up 60% year on year,...
Obtain a patent of a technology (e.g., go to the patent office Web site) and come up with 10 creative uses of the technology.
Is the modified 5-question approach to ethical decision making superior to the modified moral standards or modified Past in approach?
Ganados Globalization. After reading the chapters description of Ganados globalization process, how would you explain the distinctions between international, multinational, and global companies?
Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2015 and 2016: May...
Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle . Christie's 2015 sales (all on credit) were...
Carter Corporation's sales are expected to increase from $5 million in 2015 to $6 million in 2016, or by 20%. Its assets totaled $3 million at the end of 2015. Carter is at full capacity, so its...
Product Weight Sales Additional Processing Costs P 300,000 lbs. $ 245,000 $ 200,000 Q 100,000 lbs. 30,000 -0- R 100,000 lbs. 175,000 100,000 If joint costs are allocated based on relative weight of...
The projected benefit obligation was $380 million at the beginning of the year. Service cost for the year was $21 million. At the end of the year, pension benefits paid by the trustee were $17...
CVP Modeling project The purpose of this project is to give you experience creating a multiproduct profitability analysis that can be used to determine the effects of changing business conditions on...

Many a corporate merger is made with the motive of increasing growth. What does this growth refer

Question:

Step by Step Answer:

Usually it means growth in earnings per share Sometimes acquiring co...View the full answer

Fundamentals Of Financial Management

Students also viewed these Finance questions