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I don't know is it impossible in course hero, but i need 10-11 slides of Presentation in PowerPoint format to this issues 1a. True/ False

I don't know is it impossible in course hero, but i need 10-11 slides of Presentation in PowerPoint format to this issues

1a.True/ False- On average, acquisitions destroy shareholder value

Identify a corporate acquistion (within the last 10 years) which added value to the acquiring company and discuss a minimum of three (3) key factors which enabled their success?

1b.True/ False- A discounted cash flow valuation of a target company discounts the target's estimated free cash flows at the acquirer's cost of capital

1c.True/ False- An acquirer should be willing to pay a higher control premium for a well managed company than a poorly managed one

Why is control considered so valuable? Identify a company which paid-up for a controlling interest and assess why it was done?

1d.True/ False-The liquidation value of a company's shares always places a floor under its stock price

1e.True/ False-An unusually low stock price in management's eyes encourages management to take the company private in a management buyout

Identify an instance where management took a company private based on a low stock price valuation? Did the company remain private, and if so, why did it remain in private hands

Here answers of tutors:

1a.

The acquisitions usually don't destroy the shareholders' worth. It can be identified from the fact that the combined market value of the shares has risen at an average of 7.4% usually after the acquisition announcement has been made. Thus, the provided statement is false.

1b.

A discount rate usually reflects the risk of discounted cash flows and the discounted cash flow valuation of a target company discounts the estimated free cash flows of that target company's cost of capital and not the acquirer. Thus, the provided statement is false.

1c.

When a company is doing well there are very few chances of improvement in the company. However, when a company is not performing well, then there are high chances that the performance of the company may improve. Thus, an acquirer would invest money in a company with poor performance and not in a company that is already doing well. Thus, the provided statement is false.

Control in any company is necessary because the control will help the person to participate in the major decision making of the company. Without controlling interest, it is difficult to make policies for the company.

1d.

The decision relating to liquidation is entirely in the hands of the controlling shareholders. Thus, the statement is incorrect.

1e.

Assume that the share price of a company is $50 but the belief of the company is that the share has more value than $50. The acquisition of assets having more value would be an attractive investment. Thus, the statement is correct.

An example of such a situation is the Dell computer. The company in 2013, after suffering from huge losses got privatized. However, later on it started recovering but it remains private because it was not possible for the company to make itself as profitable as it was earlier. aaa

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