金融管理基础英文版第16版人大版MGH版简答题附答案BHD16eSMChapter20.docx

金融管理基础英文版第16版人大版MGH版简答题附答案BHD16eSMChapter20.docx

《金融管理基础英文版第16版人大版MGH版简答题附答案BHD16eSMChapter20.docx》由会员分享，可在线阅读，更多相关《金融管理基础英文版第16版人大版MGH版简答题附答案BHD16eSMChapter20.docx（17页珍藏版）》请在冰豆网上搜索。

金融管理基础英文版第16版人大版MGH版简答题附答案BHD16eSMChapter20

Chapter20

ExternalGrowththroughMergers

DiscussionQuestions

20-1.

Namethreeindustriesinwhichmergershavebeenprominent.

Computers,telecommunications,publicutilities,pharmaceuticals,andenergy.

20-2.

Whatisthedifferencebetweenamergerandaconsolidation?

Inamerger,twoormorecompaniesarecombined,butonlytheidentityoftheacquiringfirmismaintained.Inaconsolidation,anentirelynewentityisformedfromthecombinedcompanies.

20-3.

Whymighttheportfolioeffectofamergerprovideahighervaluationfortheparticipatingfirms?

Iftwofirmsbenefitfromoppositephasesofthebusinesscycle,theirvariabilityinperformancemaybereduced.Risk-averseinvestorsmaythendiscountthefutureperformanceofthemergedfirmsatalowerrateandthusassignahighervaluationthanwasassignedtotheseparatefirms.

20-4.

Whatisthedifferencebetweenhorizontalintegrationandverticalintegration?

Howdoesantitrustpolicyaffectthenatureofmergers?

Horizontalintegrationistheacquisitionofcompetitors,andverticalintegrationistheacquisitionofcompaniesthatproducegoodsandservicesusedbythecompany.

Antitrustpolicygenerallyprecludestheeliminationofcompetition.Forthisreason,mergersareoftenwithcompaniesinalliedbutnotdirectlyrelatedfields.

20-5.

Whatissynergy?

Whatmightcausethisresult?

Isthereatendencyformanagementtoover-orunderestimatethepotentialsynergisticbenefitsofamerger?

Synergyissaidtooccurwhenthewholeisgreaterthanthesumoftheparts.This“2+2=5”effectmaybetheresultofeliminatingoverlappingfunctionsinproductionandmarketingaswellasmeshingtogethervariousengineeringcapabilities.Intermsofplanningrelatedtomergers,thereisoftenatendencytooverestimatethepossiblesynergisticbenefitsthatmightaccrue.

20-6.

Ifafirmwishestoachieveimmediateappreciationinearningspershareasaresultofamerger,howcanthisbebestaccomplishedintermsofexchangevariables?

Whatisapossibledrawbacktothisapproachintermsoflong-rangeconsiderations?

ThefirmcanachievethisbyacquiringacompanyatalowerP/Eratiothanitsown.ThefirmwithalowerP/Eratiomayalsohavealowergrowthrate.Itispossiblethatthecombinedgrowthrateforthesurvivingfirmmaybereducedandlong-termearningsgrowthdiminished.

20-7.

ItispossibleforthepostmergerP/Eratiotomoveinadirectionoppositetothatoftheimmediatepostmergerearningspershare.Explainwhythiscouldhappen.

Ifearningspershareshowanimmediateappreciation,theacquiringfirmmaybebuyingaslowergrowthfirmasreflectedinrelativeP/Eratios.ThisimmediateappreciationinearningspersharecouldbeassociatedwithalowerP/Eratio.Theoppositeeffectcouldtakeplacewhenthereisanimmediatedilutiontoearningpershare.Obviously,anumberofotherfactorswillalsocomeintoplay.

20-8.

Howisgoodwillnowtreatedinamerger?

Itisplacedonthebooksoftheacquiringcompany,butitisnotamortized.Itisonlywrittendownifitisimpaired.

20-9.

Suggestsomewaysinwhichfirmshavetriedtoavoidbeingpartofatargettakeover.

Anunfriendlytakeovermaybeavoidedby:

a.Turningtoasecondpossibleacquiringcompany—a“WhiteKnight.”

b.Movingcorporateofficestostateswithtoughpre-notificationandprotectionprovisions.

c.Buyingbackoutstandingcorporatestock.

d.Encouragingemployeestobuystock.

e.Staggeringtheelectionofdirectors.

f.Increasingdividendstokeepstockholdershappy.

g.Buyingupothercompaniestoincreasesizeandreducevulnerability.

h.Reducingthecashpositiontoavoidaleveragedtakeover.

20-10.

Whatisatypicalmergerpremiumpaidinamergeroracquisition?

Whateffectdoesthispremiumhaveonthemarketvalueofthemergercandidateandwhenismostofthismovementlikelytotakeplace?

Typically,amergerpremiumof40–60percentispaidoverthepremergerpriceoftheacquiredcompany.Theeffectofthepremiumistoincreasethepriceofthemergercandidate,andmostofthismovementislikelytotakeplacebeforepublicannouncement.

20-11.

Whydomanagementandstockholdersoftenhavedivergentviewpointsaboutthedesirabilityofatakeover?

Whilemanagementmaywishtomaintaintheirautonomyandperhapskeeptheirjobs,stockholdersmaywishtogetthehighestpricepossiblefortheirholdings.

20-12.

Whatisthepurpose（s）ofthetwo-stepbuyoutfromtheviewpointoftheacquiringcompany?

Thetwo-stepbuy-outprovidesastronginducementtotargetstockholderstoquicklyreacttotheacquiringcompany’sinitialoffer.Also,itoftenallowstheacquiringcompanytopayalowertotalpricethanifasingleofferismade.

Chapter20

Problems

1.Taxloss