Why Sale Of Royal Dutch Petroleum Co. And Shell Transport & Trading Co

Both of these companies are doing better than the industry average at turning over their inventory.

However, a stock drop in the U.S. market is not historically unusual for impending mergers. So, all things considered, it looked like this might be a great combination.

b) (2 pts.) Does either firm have a dominant strategy? If yes, which firm and what strategy?

Therefore, due to these differences in approach of the management, the profitability margins are so different for these two companies.

Merger motives that are questionable on economic grounds are diversification, purchase of assets below replacement cost, and control. Managers often state that diversification helps to stabilize a firm's earnings and reduces total risk, hence benefits shareholders. Stabilization of earnings is certainly beneficial to a firm's employees, suppliers, customers, and managers. However, if a stock investor is concerned about earnings variability, he or she can diversify more easily than the firm can. Why should Firm A and Firm B merge to stabilize earnings when stockholders can merely purchase both stocks and accomplish the same thing? Further, we know that well-diversified shareholders are more concerned with a stock's market risk than with its total risk, and higher earnings instability does not necessarily translate into higher market risk.

Two competitors, FedEx and UPS, dominate the Air Delivery & Freight Services industry in the United States. FedEx is the smaller of the two with a market cap almost a third of the frontrunner UPS. UPS enjoys a higher Price to Earnings while providing a lower Earnings Per Share than FedEx. How does a firm with higher earnings per share trade at a

b. What is Q’s stock worth per share? How does that value depend on the payout ratio and growth rate after year 4?

Exxon and Chevron are so different in a number of ways. When you compare Chevron to Exxon, Chevron is a smaller firm. The ratios of Exxon are relatively larger than Chevron's. Nevertheless, Chevron has a got a wide net working capital and market ratio than its counterpart Exxon. This therefore, means that because its larger networking capital, Chevron needs a lot of money

Approximately 13.8% of the price differential in Europe for the Royal Dutch can be explained by market inefficiencies, and 11.71% for Shell in New York can be explained by the same reason.

Due to internationalization these companies have been able to spread their risk. Therefore, if one market is not performing they can rely on the other (diversification)

In order to recognize the cost synergies, Dow had one time cost of $1.3 billion spread within two years. They will achieve at least 800 million cost synergies. Growth Synergies are estimated to be between $2B and $2.6B based on expanded market portfolios, increased geographic reach and innovative technologies. Adjusting the cost synergies we calculated an equity value per share $94.63 per Rohm and Haas share.

A lot has happened over the last 50 years we’ve landed on the moon, saw the Berlin Wall fall, and even had our lives taken over by smartphones. Over all this time one thing has stayed constant, and that is the partnership of The Lego Group and The Royal Dutch Shell Oil Company. The seemingly unbreakable partnership between these two successful companies came crashing down in October of 2014 as a result of a smear campaign that was spearheaded by the environmental activist group Green Peace. Green Peace was able to challenge the partnership through an effective use of video and social media to spread Green Peace’s message. Green Peace created a public relations crisis for both Lego and Shell and forced the toy maker to choose whether to

.The advantage of being the first mover gives the opportunity to gain control. Which could bring great success and also the risk to fail. Both companies had the first mover advantage over other companies, Both were capable of expanding their busniness and achiving customer satisfaction. Not with the same level of achievement but both are still standing firm.

Firstly, I will use the stock exchanges in London and in Amsterdam to exemplify the measurement of integration between two financial markets (rather than across multiple markets). Shares of the same joint stock corporations were traded simultaneously on both exchanges starting in the summer of 1723 and continuing into the nineteenth century, both through periods of peace and large wars (Neal, The Integration and Efficiency of the London and Amsterdam Stock Markets in the Eighteenth Century, 97).

Answer: Both Companies are acting on a high-tech market. The development and progress in this market is really fast.