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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Acquisition accounting requires an acquirer and an acquirer to be identified for every business…
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Determine and describe the economic drivers or main reasons why the corporate event of the acquisition of Amazon and Wholefoods took place.
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- Which one of the following is the least likely reason a company may acquire an ownership interest in another company? Select one: a.To benefit form an overvaluing of assets in the investee company b. To oust an inefficient management team c. To take advantage of operating and/or cost synergies d. To exercise an active role in the business' activitiesIdentify each of the following business combinations as being vertical-backward, vertical-forward, horizontal, product extension, market extension, or conglomerate:a. An inboard marine engine manufacturer is acquired by an outboard engine manufacturer.b. A cosmetics manufacturer acquires a drug store chain.c. A financial holding company acquires a mail order movie rental company.d. A computer manufacturer acquires a chip manufacturer.e. The Walt Disney Company acquires a broadcasting company.f. A California-based electric utility acquires a Colorado electric utility company.Which of the following LEAST accurately describes the advantages of specific types of mergers and acquisitions?a. The catch-all term for the benefits from M&As is synergy.b. A diversified group of business may further acquire other businesses in a conglomerate type of acquisition.c. The acquisition of an entity outside the industry and supporting services will result to decrease in cost of production of the acquirer.d. Financial advantages of M&A include decreased operating costs, increased financial capacity, and combined sales.
- What do we mean by the optimal capital structure for a company? Discuss ways that a parent company might pay for a target acquisition company.When you think of a successful company in our country (a bank, airlines or a tourism company), how should the Mergers and Acquisitions be done? Explain the process choosing a company kindWhy do businesses decide to acquire other businesses? How do they decide to divest parts of their business? What are the risks and benefits of conducting business internationally?
- “The market capitalisation of a brand as reflected by their share price on the stock exchange is often far higher than the actual asset value of the company.” Dissect and evaluate this statement in relation to the difficulties encountered in valuing a company when trying to sell it.How would you explain the accounting valuations for the post -control step acquisitions to the Berkshire Hathaway executives? Do you agree or disagree with the GAAP treatment of reporting additional investments in subsidiaries when control has previously been established?Cash or Stock In the business world, firms acquire other companies all the time. However, the question arises how is the merger paid for? In this Journal you will be looking at how outside ownership benefits from either accepting a cash buyout or stock in the parent company. Find a company that acquired a company for either cash or stock and answer the following questions: What is the name of the Parent and Subsidiary firm? What were the details of the acquisition? What was the immediate impact on each of the company’s stock price? What was the impact on each of the company’s stock price over the long run? Was the acquisition successful?
- The rise of the shareholder-value movement led to: Large reinvestment of corporate profits into company infrastructure such as technology and new production facilities Large-scale sales of company stock to outside investors Profits via the global sale of goods and services Large reinvestment of corporate profits into worker retraining and skill developmentBring a real case (one of the latest cases) as an example for business acquisition. The case should• Include the introducing the both companies (acquirer and acquiree)• Explaining the business acquisition process with “reasons of acquisition”, “acquisition process” and “the results of the acquisition” • Explain the value added to the acquirer company and the acquiree in acquisitions and mergers.• The “supporting financial information” before and after the business acquisition to explain the reasons and the results of the acquisition JUST MENTION THE LINK KINK OF THE CASESynergies from mergers and acquisitions may be operating or financial in nature. Which of the following is a financial synergy?a. Better debt capacity and cost of debt b. Improved forecast for demand and supply of the main product of the parent companyc. Improved employee productivityd. Improved market share