Question
ALLGO announced at Time t that it was acquiring DoLittle Industries. There were no other announcements affecting these firms. ALLGO's stock had daily returns of
ALLGO announced at Time t that it was acquiring DoLittle Industries. There were no other announcements affecting these firms. ALLGO's stock had daily returns of -.2, +.1, -.5, -.1, +.1 for Time t - 2 to Time t + 2, respectively. The daily returns on the market were -.1, +.2, +.1, -.2, and +.2 for Time t - 2 to Time t + 2, respectively. What is the cumulative abnormal return for these five days?
An after-tax salvage cash flow occurs when
-
an asset that is fully deprectiated is discarted.
-
an asset directly related to a project is sold and a cash flow is realized.
-
an asset is purchased with after-tax earnings of the firm.
-
none of the options.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started