FIN660 Advanced Financial Strategies

Week 6 Discussion

DQ1 Compare and contrast Shareholder Value at Risk (SVAR) with premium risk.

DQ2 Review the table titled “What Is an Acquirer’s Risk in an All-Cash Deal?” in the Harvard Business Review article, “Stock or Cash?: The Trade-Offs for Buyers and Sellers in Mergers and Acquisitions.” Assume that the acquirer is smaller than the target. What does the table indicate given this assumption?