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lara31 [8.8K]
3 years ago
10

Auto Mart, a large auto parts distributor, is attempting to acquire Rubber Meets the Road, a tire manufacturer. However, Rubber

Meets the Road does not want to be taken over, so it issues a poison pill to try to head off the hostile takeover attempt. What does this entail
Business
1 answer:
qaws [65]3 years ago
8 0

Answer:

The Rubber Meets the Road has issued shares at discount to market price to its shareholders (Right Issue)

Explanation:

These tactics are used by the company who wants to defend itself from the acquirer because they think they will damage the company values, culture, restructure business processes and change in people who work and are part of the organization. In other words they think are a family and will loose each other and the associated benefits now they are enjoying so what they do is they upper management issues the rights to its existing shareholders at discount to market value.

The investment doesnot seems attractive as the benefit are no more if the acquirer pays extra dollars to buy the 50% shares which have been increased due to right issue. So the statement hostile takeover means the defending strategy of the firm that the acquirer wants to acquire its control by buying more than 50% shares.

You might be interested in
Government programs that compensate farmers for not planting crops on all their land : hurt farmers by lowering their total reve
Zolol [24]

Answer:

Help farmers by increasing total revenue in the market but hurt consumers by raising food prices

Explanation:

Farm subsidies are expensive for taxpayers while also harming the economy and the environment. These government programs restrict farmers from wanting to innovate, cut costs, diversify their use of the land, and perform other necessary actions that bring them economic prosperity. This affects customers by raising food prices.

3 0
3 years ago
Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi
frez [133]

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

3 0
4 years ago
When selling convenience goods such as tobacco, newspapers, chewing gum, and potato chips to convenience stores, companies often
valentinak56 [21]

Answer: intensive distribution

                 

Explanation: In simple words, it refers to a marketing strategy under which a company offers its product through as many outlets as possible in the market so that customers can easily find their product when in need.

The core objective of implementing thus Strategy is to make customer satisfied regarding the availability. These strategy is implemented for the products that already have a strong customer base.

Hence from the above we can conclude that the correct option is B.

5 0
3 years ago
last year, you earned a rate of return of 7.55 percent on your bond investments. during that time, the inflation rate was 2.19 p
pychu [463]

The real rate of return is 3.15%.

What is real rate of return?
The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.


1+real rate = (1+rate of return) / (1+inflation)
1 + real rate = (1+0.0645) / (1+0.032)
1 + Real Rate = 1.0315
Real Rate = 0.0315 = 3.15%

To learn more about real rate of return
brainly.com/question/3578105
#SPJ4

4 0
1 year ago
The post-closing trial balance consists only of Group of answer choices Asset and liability accounts. Nominal accounts. Revenue
mariarad [96]

Answer:

Permanent accounts

Explanation:

The post-closing trial balance consists only of permanent accounts. These permanent accounts are assets, liabilities, and equity. Permanent accounts are not closed when an accounting period ends. Temporary accounts (revenue, expense, dividend) on the other hand is a direct opposite as they are closed or cleared to zero when an accounting period ends.

4 0
3 years ago
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