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Examples of corporate restructuring are any of the following EXCEPT
a. Split-off
b. Carve-out
C. Share-cut
d. Spin-off
Step by step
Solved in 2 steps
- The form of corporate restructuring in which a small group of investors raises loan financing to purchase all the equity shares of a public company is called Select one: a. a privatization. b. a leveraged buyout. c. an indenture. d. a debenture. e. a reorganization.Management accounting- mergers and aquisitions Mergers are often categorised as horizontal, vertical or conglomerate. Explain each of these type of mergers in detail.Describe briefly four factors which explain why shareholders of acquiring companies rarely benefit from takeovers?
- Describe briefly some of the important contributing factors which explain why shareholders of acquiring companies rarely benefit from takeoversWhat are the potential financial impacts of a corporate restructuring on a company's financial statements?Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business.
- Which of the following is not a right of owners of common shares? Residual assets in liquidation Vote on proposed mergers Vote for company directors Obtain past dividends not paidWhen one company buys the assets and liabilities of another company, this is known as which of the following?Choose one answer.a. Limited liability company b. Merger c. Conventional corporation d. AcquisitionWhat is a Rights Issue?(a) The sale of rights to a bond coupon. (b) The right of shareholders to have the company buy back their shares. (c) It is where the firm raises additional equity capital after the IPO. (d) It is a sale of priority rights to creditors in the event of the company being wound up.
- Describe briefly four (4) factors explaining why shareholders of acquiring companies rarely benefit from takeovers.Describe how a company could be required to consolidate another company in which it has no or minor voting stock.Offer some reasons that a company might choose to merge with or acquire another company.
