Question: 1. Forecasted dividends affect forecasted shareholders' equity but do not affect the value calculated from forecasted financial statements. Why?
2. What is a red-flag indicator?
3. What is an unarticulated strategy?
4. Why must the effect of a merger or acquisition on shareholder value be calculated on a per-share basis?
5. When might management of a firm consider a leveraged buyout?
6. Why might the shares of the acquiring firm in an acquisition decline on announcement of the acquisition?