Merging of high beta or low beta companies


Using This Web Page, find the value of beta for your reference company. Write a two page paper discussing the following items:

Reference Company: Haemonetics Corporation

Question 1: What does this beta means in terms of the overall risk of your company and the implications for raising capital for your firm? Are interest rates charged by banks or bond investors likely to be high or low based on the beta?

Question 2: If you were going to select one or two companies to merge with based on beta, what would they be? Pick two companies, and explain whether you would choose to merge with high beta or low beta companies.

Explain your answers thoroughly using your knowledge of the concept of beta.

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Finance Basics: Merging of high beta or low beta companies
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