Question

In: Economics

Discuss how the proposed financial restructuring of the merger plan is to be financed based on...

Discuss how the proposed financial restructuring of the merger plan is to be financed based on the two (2) capital structure theories.

Solutions

Expert Solution

capital structure is communicated as an debt to equity or equity to capital proportion.

A merger is an understanding that interface two existing companies into one new shaping organization. There are numerous kinds of mergers and furthermore numerous reasons why companies total mergers. Mergers and acquisitions are regularly used to extend a companies reach, future and venture into new levels, or addition piece of the pie.

The merger plans are mainly focused on the process or methods that are based on some capital theories. A change in the existing environment of business, results for a change in the way in which companies within that business environment. Wheather the change in environment is drastic, then the change in companies would also have to be
dramatic.

At the point when this emotional change is to do with changing the whole structure of the organization, it is called as Corporate Restructuring. Any kind of restructuring is focused on development or accomplishing supportability.


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