mehakdaga12

mehakdaga12

Lv2

University of Calcutta

0 Followers
0 Following
0 Helped

ANSWERS

Published19

Subjects

Business1Science1Electrical Engineering1Information Technology1Computer Science1Accounting6Biology1Physics4Economics1Chemistry2
Answer: Morale in business administration refers to the overall mood, attitude...
Answer:The argument presented suggests that while freeing macroeconomic policy...
Answer:Specialized structures within a cell, such as organelles, play crucial ...
Answer: Approx 0.028 kgStep-by-step explanation:To find out how much nitrogen ...
Answer: To solve this problem, we'll use the principles of heat transfer and p...
Answer: To calculate the amount of liquid nitrogen that would boil away as the...
Answer:Creating and using animations in Blender involves several steps, includ...
Answer:The "degree" of liquid nitrogen typically refers to its temperature, as...
Answer:Let's address each requirement step by step:a. **Break-even Point in Un...
Answer: Let's go through each requirement step by step:1. **Break-even Point i...
Answer: Step-by-step explanation:Let's break down each question:a. **Break-eve...
Answer:AI stands for Artificial Intelligence. It refers to the simulation of h...

QUESTION 1

A friendly suitor that a target firm turns to as an alternativeto a hostile bidder is called a:

golden suitor.

poison put.

white knight.

shark repellent.

2 points

QUESTION 2

A proposed acquisition may create synergy by:

I. increasing the market power of the combined firm.
II. improving the distribution network of the acquiring firm.
III. providing the combined firm with a strategic advantage.
IV. reducing the utilization of the acquiring firm's assets.

I and III only

II and III only

I and IV only

I, II, and III only

2 points

QUESTION 3

An attempt to gain control of a firm by soliciting a sufficientnumber of stockholder votes to replace the current board ofdirectors is called a:

tender offer.

proxy contest.

going-private transaction.

leveraged buyout.

2 points

QUESTION 4

Cassandra's Boutique has 2,100 shares outstanding at a marketprice per share of $26. Sally's has 3,000 shares outstanding at amarket price of $41 a share. Neither firm has any debt. Sally's isacquiring Cassandra's for $58,000 in cash. The incremental value ofthe acquisition is $2,500. What is the value of Cassandra'sBoutique to Sally's?

$26,000

$27,600

$57,100

$58,200

4 points

QUESTION 5

Goodday & Sons is being acquired by Baker, Inc. for $19,000worth of Baker stock. Baker has 1,500 shares of stock outstandingat a price of $25 a share. Goodday has 1,000 shares outstandingwith a market value of $16 a share. The incremental value of theacquisition is $2,000. How many new shares of stock will be issuedto complete this acquisition?

760.0 shares

840.0 shares

960.0 shares

1,187.5 shares

4 points

QUESTION 6

If the All-Star Fuel Filling Company, a chain of gasolinestations, acquires the Mid-States Refining Company, a refiner ofoil products, this would be an example of a:

conglomerate acquisition.

white knight.

vertical acquisition.

going-private transaction.

2 points

QUESTION 7

The Floral Shoppe and Maggie's Flowers are all-equity firms. TheFloral Shoppe has 1,600 shares outstanding at a market price of $20a share. Maggie's Flowers has 2,550 shares outstanding at a priceof $28 a share. Maggie's Flowers is acquiring The Floral Shoppe for$36,000 in cash. The incremental value of the acquisition is$3,300. What is the net present value of acquiring The FloralShoppe to Maggie's Flowers?

$-700

$-1,700

$300

$2,300

4 points

QUESTION 8

Which of the following represent potential tax gains from anacquisition?

I. A reduction in the level of debt
II. An increase in surplus funds
III. The use of net operating losses
IV. An increased use of leverage

I and IV only

II and III only

III and IV only

I and III only

2 points

QUESTION 9

Firm A is planning to acquire Firm B. If Firm A prefers to makecash offer for the merger it indicates that:

A.

Firm A's managers are optimistic about the post merger value ofA

B.

Firm A's managers are pessimistic about the post merger value ofA

C.

Firm A's managers are neutral about the post merger value ofA

D.

None of the above

2 points

QUESTION 10

Firm A has a value of $200 million, and B has a value of $120million. Merging the two would allow a cost savings with a presentvalue of $30 million. Firm A purchases B for $130 million. How muchdo firm A's shareholders gain from this merger?

A.

$30 million

B.

$20 million

C.

$15 million

D.

$10 million

4 points

QUESTION 11

Many mergers that appear to make economic sense fail becausemanagers are unable to handle the complex task of integrating twofirms with different:
I) production processes
II) accounting methods
III) corporate cultures

A.

I only

B.

I and II only

C.

III only

D.

I, II and III

2 points

QUESTION 12

The DOC Corporation with a book value of $20 million and amarket value of $30 million has merged with the CIC Corporationwith a book value of $6 million and a market value of $8 million ata price of $9 million. If the transaction is a purchase will therebe any goodwill, and if so, what is the amount of goodwill?

A.

No goodwill; 0

B.

Yes goodwill; 3

C.

Yes goodwill; 1

D.

Cannot be calculated with the information given

2 points

QUESTION 13

Takeover defenses are designed to benefit

A.

Stockholders

B.

Workers

C.

Creditors

D.

Managers

2 points

QUESTION 14

Companies A and B are valued as follows:

Company A Company B
Shares outstanding 2,000 1,000
Earing per share 10 10
Price per share 100 50


Company A now acquires B by offering one (new) share of A for everytwo shares of B (that is, after the merger, there are 2500 sharesof A outstanding). If investors are aware that there are noeconomic gains from the merger, what is the price-earnings ratio ofA's stock after the merger?

A.

7.5

B.

8.3

C.

10.0

D.

5.0

4 points

QUESTION 15

Compensation paid to top management in the event of a takeoveris called a:

A.

Poison pill

B.

Golden parachute

C.

Self-tender

D.

Buyout

Answer:Let's go through each question:1. A friendly suitor that a target firm ...
Answer: C. HOSTLE TAKEOVERStep-by-step explanation:In the movie "Other People'...
Answer:In accounting, a "liquidator" typically refers to a person or entity re...
Answer: To calculate the standard free Gibbs energy (\(\Delta G^\circ\)) of th...
Answer: Step-by-step explanation:To compile this information, you'd likely sta...
Answer: NO means NITRIC OXIDEStep-by-step explanation:In chemistry, "NO" typic...
Answer: BLUEWHALEStep-by-step explanation:The blue whale holds the title for b...

Weekly leaderboard

Start filling in the gaps now
Log in