As the fall in the value of Apple's shares are less than the rise in the share price of Netflix the market thinks that combining these assets will create a value.The answer is "B".
15. Individual Problems 2-5 Suppose Apple recently made a bid to acquire Netflix. As a result,...
15 . Individual Problems 2-5 Suppose Apple recently made a bid to acquire Netflix. As a result, the market value of Netflix rose. Furthermore, suppose the market value of Apple fell by the same amount, exactly offsetting the rise in the market value of Netflix. What does this tell you about the value-creating potential of the deal? The market thinks that combining these assets will neither create nor destroy value. The market thinks that combining these assets will destroy value....
When Kraft recently bid $16.7 billion for Cadbury, Cadbury's market value rose, but Kraft's market value fell by more. What does this tell you about the value-creating potential of the deal?
2006, interest rates increased from 5% to 7%, when this happens consumers are A. less likely to save, that is, sell a financial asset. B. more likely to save, that is, sell a financial asset. C. less likely to save, that is, purchase a financial asset. D. more likely to save, that is, purchase a financial asset. I. In 2. If commercial banks hold all their assets in the form of required reserves: A. only they will be able to...