Please answer the given questions: (150 words each)
Problem 1: Many companies over the past few years have used private equity financing to become private (closely held) companies. These were publicly traded companies. What are some advantages and disadvantages converting to a private company from a publicly traded company with common stock traded on a large public exchange such as the NYSE?
Problem 2: Why might a public company consider a leveraged buyout (LBO)? What is the role of mezzanine financing in an LBO?
Problem 3: What are the most important metrics to use when evaluating the results of an acquisition? How long after completing the acquisition should the acquiring company wait before completing its evaluation of the deal?
Problem 4: Should the required rate of return for firms with international projects be different from the required rate of return for similar domestic projects?