a) Maddow and Wells, Inc. purchased securities five years ago. The company classified the securities as available-for-sale at the time of purchase. Now, MW desires to reclassify the securities to trading securities. Is it appropriate for MW to reclassify these securities? What justification is required for the reclassification?
b) Use EDGAR (sec.gov) to access the filing noted. In 2018, CareDx, Inc. filed Form S-1. What is the difference between form S-1, S-3 and S-4? What does CareDx, Inc. do? Why did CareDx issue this filing? What does CareDx, Inc. expect to do with the money? What is the maximum amount that CareDx expect to raise? What category of filer is CareDx? What accounting firm was involved in this filing?
c) Use a reputable and reliable source to support your response. Cite the source using APA formatting. News of mergers are plentiful: CBS and Viacom; CVS and Aetna; Keurig and Dr. Pepper; ThyssenKrupp and Tata Steel; etc. Some mergers are successful, while others fail. Chapter 2 begins the discussion of the accounting treatment for mergers and acquisitions. There are many steps that precede the culmination of a merger.
What factors might prevent a merger from going forward? List at least three.