Thermo Fisher Designed a Capital Structure for Financing the Deal

question 108

Essay

Thermo Fisher designed a capital structure for financing the deal that would retain its investment grade credit rating. To do so, it targeted a debt to total capital and interest coverage ratio consistent with the industry average for these credit ratios. What is the potential impact on Thermo Fisher's ability to retain an investment grade credit rating if it had financed the takeover using 100% senior debt? (Hint: In the Sources and Uses section of the Transaction Summary Worksheet, set excess cash, new common shares issued, and convertible preferred shares to zero. Senior debt will automatically increase to 100% of the equity consideration plus transaction expenses.) Explain your answer.

Acknowledge the significance of allocating a reasonable time frame to develop new habits for effective time management.

Grasp the first rule of time management and its application.

Learn strategies for managing daunting tasks effectively.

Discover methods for minimizing time-wasting interruptions.

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Definitions:

Guided Imagery

A relaxation technique that involves focusing the mind on peaceful, detailed images to facilitate relaxation or healing.

Qi Gong

A centuries-old system of coordinated body-posture and movement, breathing, and meditation used for the purposes of health, spirituality, and martial-arts training.

Stress Reduction

The process of decreasing the level of stress that an individual experiences, often through techniques like deep breathing, meditation, or exercise.

Thermal Energy

The internal energy contained within a system that is responsible for its temperature.