Questions from Corporate Finance


Q: Which psychological phenomena might have been at play in leading Yahoo!

Which psychological phenomena might have been at play in leading Yahoo!’s board to reject Microsoft’s offer?

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Q: Discuss the discussion of reference point heuristics in the press coverage of

Discuss the discussion of reference point heuristics in the press coverage of the Microsoft offer, and indicate whether the comments in the press are consistent with the actual merger talks between th...

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Q: Estimate the value of the synergy associated with the projected cost savings

Estimate the value of the synergy associated with the projected cost savings of $1.5 billion per year, assuming that the stream of cost savings would begin a year after the acquisition announcement, a...

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Q: Had Microsoft acquired Yahoo!, would the acquisition have been classified as

Had Microsoft acquired Yahoo!, would the acquisition have been classified as a bad merger? The technical definition of a bad acquisition can be found in the endnotes to this chapter.

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Q: The Morgan Stanley report on eBay, dated July 23, 2015

The Morgan Stanley report on eBay, dated July 23, 2015, established a one-year forward price target of $29 per share.19 At the time of the report, eBay’s stock price was $28.45, which the report noted...

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Q: Identify behavioral issues associated with Microsoft’s decisions about capital structure and capital

Identify behavioral issues associated with Microsoft’s decisions about capital structure and capital budgeting.

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Q: Discuss whether there are any behavioral issues associated with whether Microsoft pays

Discuss whether there are any behavioral issues associated with whether Microsoft pays for Yahoo! using 100 percent cash, or instead 50 percent cash and 50 percent stock.

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Q: Financial economist Aswath Damordaran was quoted in The New York Times about

Financial economist Aswath Damordaran was quoted in The New York Times about the dangers of the Steve Jobs effect, whereby CEOs seek to emulate Jobs’s success in taking Apple from being close to failu...

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Q: What does the information presented in the minicase suggest about goal setting

What does the information presented in the minicase suggest about goal setting at Toshiba?

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Q: Discuss the issue of process loss in the events described in the

Discuss the issue of process loss in the events described in the minicase.

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