CH03+questions

CH03+questions - Chapter 3 Non-bank financial institutions...

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Chapter 3 Non-bank financial institutions 1. It is contended that the distinction between merchant banks and investment banks has become blurred. Briefly discuss the origins of merchant banking and investment banking. Explain why these two types of institutions have become very similar in their business activities. 2. A number of the advisory services investment banks provide to their corporate clients are defined as off-balance-sheet business. One service is providing advice to clients on balance- sheet restructuring. Explain the concept of balance-sheet restructuring and provide some examples of the areas of advice that an investment bank might provide in this situation. 3. In a merger and acquisition, a takeover company seeks to gain control of a target company. (a) Describe the three categories of merger and acquisition strategies. (b) Explain the synergy benefits that a merger and acquisition attempts to achieve. 4. Typically, an investment bank will act on behalf of a company involved in a merger and
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CH03+questions - Chapter 3 Non-bank financial institutions...

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