Economics Homework Help

University of Miami Financial Analysis in Decision Making Discussion Paper

 

I’m trying to learn for my Finance class and I’m stuck. Can you help?

Prior to beginning work on this assignment, read the article at this link https://hbr.org/1979/07/strategic-analysis-for-more-profitable-acquisitions and Chapters 2 and 19 in this text book “Berk, J. B., & Demarzo, P. M. (2014). Corporate finance (3rd ed.). Retrieved from https://www.vitalsource.com

You will also need to research and use 2 other scholarly and/or professional sources in additional to the website and the textbook above to enhance your understanding of the topics covered in this assignment.

For the assignment, analyze business valuation techniques, and briefly discuss the role of financial analysis in the decision-making process for a merger and acquisition. In the assignment, explain which financial analysis techniques would assist a financial manager in developing a proposal for a mergers and acquisitions activity. Use the following questions to guide your explanation. Support your statements with evidence from your sources.

What is the maximum price that should be paid for the target company?

What are the principal areas of risk?

What are the earnings, cash flow, and balance sheet implications of the acquisition?

What is the best way of financing the acquisition?