Corporate Finance Principles and Practice 4th. Edition by Denzil Watson, Anthony Head | 9780273706441 | 273706446 | Holooly

Corporate Finance

Corporate Finance Principles and Practice

179 SOLVED PROBLEMS

Question: 11.S-tQ.2

Briefly outline the financial reasons used to justify acquisitions. ...

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The financial benefits that may be gained by share...

Question: 11.S-tQ.3

Why might growth by acquisition not be in the best interests of a company? ...

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A number of arguments have been advanced against u...

Question: 11.S-tQ.4

Explain why acquisitions occur in waves. ...

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There is no consensus view on why mergers and take...

Question: 11.S-tQ.5

Discuss the use of the P/E ratio and dividend growth methods of determining the value of a target company. ...

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Using P/E ratios to value companies is a rough rul...

Question: 11.S-tQ.6

Explain why the DCF valuation method is preferred by academics. ...

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The DCF valuation method is preferred by academics...

Question: 11.S-tQ.8

Briefly describe four defences that could be used by a company after its board has received a takeover bid. ...

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Possible post-bid defences that you could have des...

Question: 11.S-tQ.10

Describe briefly some of the important contributing factors which explain why shareholders of acquiring companies rarely benefit from takeovers. ...

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Possible reasons why the shareholders of acquiring...

Question: 11.Qfr.1

Explain the major justifications likely to be put forward to explain the following types of acquisitions: (a) horizontal acquisitions; (b) vertical backwards and forwards acquisitions; (c) conglomerate acquisitions. ...

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(a) The major justifications put forward to explai...

Question: 11.Qfr.3

Carsley plc and Powell plc are planning to merge to form Stimac plc. It has been agreed that Powell’s shareholders will accept three shares in Carsley for every share in Powell they hold. Other details are as follows: ...

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Powell’s market value, using its P/E ratio and ear...

Question: 11.Qfr.4

What are the major considerations that an acquiring company has to take into account when deciding how to finance a proposed takeover? ...

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There are a large number of factors that will infl...

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