Question
Questions: The assignment should contain about 3000 words You are required to search at least five (5) journal research articles related to corporate merger and
Questions: The assignment should contain about 3000 words
You are required to search at least five (5) journal research articles related to corporate merger and acquisition. Based on these research articles, you are required to:
1.Discuss the industry that you anticipate will experience industry shock that will spur merger activity in the near future. Do you believe that increasing global competition will further heighten merger activity?
2.Elaborate on the significance of the mode of payment for the stockholders of the target firm and their continued interest in the surviving firm. Specifically, which mode of payment retains the stockholders of the target firm as stockholders in the surviving firm? Which payment form receives preferential tax treatment?
3.Empirically, what are the wealth effects of corporate control activities? Who wins and who loses in corporate control contest? Why there are higher takeover premiums paid in cash transactions than in stock transactions? How do other security holders fare in takeovers? Discuss.
4.Explain, given the empirical results presented in the articles, how you would structure a takeover as a CEO of an acquiring firm. Would your perspective on the takeover change as a stockholder or as a bondholder?
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