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[財(cái)會(huì)考試]財(cái)務(wù)管理第十六章(1)-在線瀏覽

2025-03-08 17:46本頁面
  

【正文】 gies. Possible Benefits of Mergers ? Economies of Scale ex: reduce administrative expenses as a percentage of sales. ? Tax Benefits ex: target firm has tax credits from operating losses, and lacks the ine to use the credits. ? Unused Debt Potential ex: merging with a firm that has little debt increases debt capacity. Possible Benefits of Mergers ? Complementarity in Financial Slack ex: a cashpoor firm merging with a cashrich firm will be able to accept more positive NPV projects. ? Removal of Ineffective Managers ex: ineffective target firm managers may be replaced, increasing the value of the target firm. Possible Benefits of Mergers ? Increased Market Power ex: merging may increase monopoly power, but too much may be illegal. ? Reduction in Bankruptcy Costs ex: merger may improve financial condition of the bined firm, reducing direct and indirect costs of financial distress. Determination of Firm Value 1) Book value: assets minus liabilities on the balance sheet. Book value is based on historical cost minus accumulated depreciation. 2) Appraisal value: firm value is estimated by an independent appraiser. This estimate is often based on the firm’s replacement cost.
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