a. Define a horizontal merger. How can a horizontal merger produce synergy benefits?
b. List one benefit of trading halts for publicly listed companies as a way of managing information made available to the public, and list two disadvantages of trading halts.
c. How does goodwill (under FASB 141 R) impact cash flows of the combined entity?
How do the 1993 tax law changes impact goodwill and the after tax cash flows of the combined entity after the M & A?
d. What were the reasons behind the M & A waves of the 1980s and 1990s?