Assignment7 - Assignment 7 Johnson Graduate School of...

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Assignment 7 Johnson Graduate School of Management Equity Derivatives and Related Products Due on November 16, 2010 Professor Mark Zurack It’s November 4, 2010 and  Doug Smith (35 years old), the CEO of Adaptstore Co, a private co mpany   producing fiber host adaptors for storage device use is faced with the biggest financial challenge of his life.   Four weeks ago, his co mpany was acquired by QLogic Corp, a public co mpany that simplifies the process of   networking storage for OEMs, resellers, and system integrators (NASDAQ: QLGC, $17.91 on 11/4/10). The transaction, which closed and was announced to the public a month earlier, was tax exe mpt in the form of   stock-for-stock. Doug takes a second glance at the stack of transaction documents.  He is accustomed to dealing with co mplex   issues in his business, but this acquisition represents a myriad of moving parts.  Doug thinks about all the tax,   legal, and economic implications of the transaction: Tax The acquisition is a tax exempt, stock-for-stock merger.  This enables Doug to maintain a long term   holding period in the shares.
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Assignment7 - Assignment 7 Johnson Graduate School of...

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