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Question 1: 

How did Humana's stock price react to news that it was exploring a possible sale of the company?

Question 2:

How would you explain this reaction?

Question 3:

According to the article, health insurers are under pressure to squeeze out costs and "mergers could help." How could mergers help squeeze out costs?

Question 4:

Do you think government regulators will oppose the sale of Humana? Why or why not?

Jul 10th, 2015

Thank you for the opportunity to help you with your question!

Question 1: 

How did Humana's stock price react to news that it was exploring a possible sale of the company?

Shares of Humana Inc rose by almost 20% considering a possible sale of the company.

Question 2:

How would you explain this reaction?

The shares rose primarily because investors anticipated that a take over of the Company will lead to more number of health insurance deals which have been low lately due to tie ups of other rivals.

Question 3:

According to the article, health insurers are under pressure to squeeze out costs and "mergers could help." How could mergers help squeeze out costs?

Mergers allows reduction of administrative costs. Mergers also offer economies of scale  especially if the industry suffers from high fixed costs. Getting bigger alos helps merged companies increased leverage in negotiating rates with hospitals, 

Question 4:

Do you think government regulators will oppose the sale of Humana? Why or why not?

The Government may oppose the sale of Humana because of antitrust concerns. The effect of mergers on prices charged from the consumers may be a steep hike and the Government does not want the consumers to suffer.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 10th, 2015

1: 

Click Link Below for Article:

http://www.wsj.com/articles/humana-considers-sale-of-company-1432919621

When posting your discussion response, make sure that you answer the following questions and provide a link of a site that supports what you have provided for your discussion response.  If you do not add a link along with your discussion response you will receive half of the credit for the discussion assignment.

Question 1: 

How did Humana's stock price react to news that it was exploring a possible sale of the company?

Question 2:

How would you explain this reaction?

Question 3:

According to the article, health insurers are under pressure to squeeze out costs and "mergers could help." How could mergers help squeeze out costs?

Question 4:

Do you think government regulators will oppose the sale of Humana? Why or why not?

this is complete question i need 1-2 pages 

please complete i have 6 hour only that i will complte the payment

Jul 10th, 2015

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