Speculate as to why the share prices of American and US Airways increased sharply on the day

Question:

Speculate as to why the share prices of American and US Airways increased sharply on the day that the agreement with the Justice Department had been reached? Why did the share prices of other major airlines also increase?

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

Step by Step Answer:

Related Book For book-img-for-question

Mergers, Acquisitions and Other Restructuring Activities

ISBN: 978-0128013908

8th edition

Authors: Donald DePamphilis

See More Books

Question Posted: Sep 08, 2017 10:07 AM

See More Questions

The Vanguard Group is an investment firm with more than 50 different mutual funds in which the public may invest. Among these funds are 13 international funds that concentrate on investments in...
How was ownership transferred in this deal? Speculate as to why this structure may have been used?
1. Speculate as to why Novartis acquired only a 25% ownership stake in Alcon in 2008. 2. Why was the price ($181 per share) at which Novartis exercised its call option in 2010 to increase its stake...
Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Best Digital, Corp., and Every Zone, Inc., and have...
Which of the following reactions is more likely to occur?Explain. eat eat 2.
Describe seven principles for a user-centered interface design.
16. The Village of Lester had appropriations of $250,000 for the current fiscal year. If $175,000 worth of items has been ordered but only $150,000 of the $175,000 has been received, what amount can...
Sleepy Hollows General Fund budget for fiscal 2013 is based on the following estimated revenues and appropriations. Is Sleepy Hollow projecting a budgetary surplus or a deficit for 2013? Prepare the...
Prepare a Grand Strategy Matrix for LASCO
BBA L 300 Ltd (BBA) is a resident company, since its incorporation has been providing Mining Support Services (MSS) in line with its mandate. The following information is relevant to its operations...
Whose interests do you believe antitrust regulators represent? What trade-offs do antitrust regulators face in making decisions that impact the groups whose interests they represent? Be specific.
Why do you believe the regulators approved the deal despite the large increase in industry concentration and their awareness that historically increases in concentration would likely result in a...
Five pounds of air per second discharge from a tank through a convergent-divergent nozzle into another tank where a vacuum of 10 in. of mercury is maintained. If the pressure and temperature in the...
who do you think sets the underlying ethical standards when the law is fuzzy on an issue? as business and societal issues develop in the future, how does your opinion in this area inform your...
how do i introduce low risk high reward for a new medical assistant supervisor role in an organization?
How do individual differences in cognitive styles, such as analytical versus intuitive thinking, impact problem-solving approaches and decision-making processes within teams ?
In Russian government, do you think that Russian Military Performance is good in warfare against Ukraine? Explain.
Why do you think the competing values framework is important to an organization's effectiveness? Describe the four profiles of the competing values framework. Identify one of the profiles and provide...
What effect does closing inventory have on cost of sales?
The following items were displayed in the statement of affairs for Lubbock Company: Fully secured liabilities ......... $90,000 Partially secured liabilities ....... 12,000 Unsecured liabilities...
Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method? How is any premium that the acquiring firm paid over the acquired firms book value...
Acquisitions can have important tax consequences depending on (a) Whether the acquiring firm purchases the targets stock or just its assets, (b) Whether cash or stock is used for the payment, and (c)...
Distinguish between the APV, FCFE, and corporate valuation models.
Flexible manufacturing places new demands on the management accounting information system and how performance is evaluated. In response, a company should a. institute practices that reduce switching...
Revenue and expense items and components of other comprehensive income can be reported in the statement of shareholders' equity using: U.S. GAAP. IFRS. Both U.S. GAAP and IFRS. Neither U.S. GAAP nor...
Kirk and Spock formed the Enterprise Company in 2010 as equal owners. Kirk contributed land held an investment ($50,000 basis; $100,000 FMV), and Spock contributed $100,000 cash. The land was used in...

Speculate as to why the share prices of American and US Airways increased sharply on the day

Question:

Step by Step Answer:

Investors approved of the merger and other airline share prices rose due ...View the full answer

Mergers, Acquisitions and Other Restructuring Activities

Students also viewed these Corporate Finance questions