Question
Answer the following brief and concise Thanks 1.What are the limitations of using enterprise-value-to-revenues multiples? When are they useful? 2.Should a company operate a diversified
Answer the following brief and concise Thanks
1.What are the limitations of using enterprise-value-to-revenues multiples? When are they useful?
2.Should a company operate a diversified portfolio of businesses? What are the arguments for and against?
3.Describe the circumstances under which the acquirer is better off paying in stock rather than cash. What are the implications for the acquirers' shareholders of paying in stock?
4.Do firms involved in acquisitions do better job of realizing cost savings or revenue improvements following an acquisition? Why?
5.An electronics conglomerate intends to divest its high-growth energy division, which develops and manufactures solar panels, windmills, and other "green energy" products. The division has an estimated value of $250 million, around 5 percent of the total value of the conglomerate. What do you think could be the most promising transaction approaches? Why?
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