雨课堂学堂在线学堂云Cross-Border Mergers and Acquisitions(上海对外经贸大学)单元测试考核答案

第1题Whichofthefollowingisnottrueofmergers?

ALiabilitiesandassetstransferautomaticallyBMaybesubjecttotransfertaxes.CNominorityshareholdersremain.DMaybetimeconsumingduetoneedforshareholderapprovals.EMayhavetopaydissentingshareholdersappraisedvalueofstock第2题Whichofthefollowingistrueonlyofaconsolidation?

AMorethantwofirmsareinvolvedinthecombinationBOnepartytothecombinationdisappearsCAllpartiestothecombinationdisappearDTheentityresultingfromthecombinationassumesownershipoftheassetsandliabilitiesoftheacquiringfirmonly.EOnecompanybecomesawhollyownedsubsidiaryoftheother.第3题Allofthefollowingareoftencitedasfactorscriticaltotheultimatesuccessoftheintegrationeffortexceptfor

APlancarefully,actquicklyBTheuseofprojectmanagementtechniquesCEarlycommunicationfromthetopoftheorganizationDSalaryandbenefitreductionsformanyemployeesoftheacquiredcompanyinordertorealizecostsavingsEMakingthetoughdecisionsasearlyaspossible第4题Eachofthefollowingistrueabouttheacquisitionsearchprocessexceptfor

AAcandidatesearchshouldstartwithidentifyingtheprimaryselectioncriteria.BThenumberofselectioncriteriashouldbeaslengthyaspossible.CAtaminimum,theprimarycriteriashouldincludetheindustryanddesiredsizeoftransaction.DThesizeofthetransactionmaybedefinedintermsofthemaximumpurchasepricetheacquireriswillingtopay.EAsearchstrategyentailstheuseofelectronicdatabases,tradepublications,andqueryingtheacquirer’slaw,banking,andaccountingfirmsforqualifiedcandidates.第5题WhatisthecorecompetenceunderlyingHondaCorporationproductoffering?

AProductdistributionBMarketingCInternalcombustionenginedesignDExteriordesignEOrganizationalstructure第1题AfirmmaybemotivatedtopurchaseanotherfirmwheneverAThecosttoreplacethetargetfirm’sassetsislessthanitsmarketvalueBThereplacementcostofthetargetfirm’sassetsexceedsitsmarketvalueCWhentheinflationrateisacceleratingDTheratioofthetargetfirm’smarketvalueismorethanfourtimesitsbookvalueEThemarkettobookratioisgreaterthanoneandincreasing第2题Whichofthefollowingisgenerallynotconsideredacommonmotiveforexitingbusinesses?AChangingstrategyorfocusBDesiretoachieveeconomiesofscaleCLackoffitwiththeparent'sotherbusinessesDDiscardingunwantedbusinessesfromprioracquisitionsEAlloftheabove第3题Whichofthefollowingisgenerallynotconsideredacharacteristicofafinancialbuyer?AFocusonshort-to-intermediatereturnsBConcentrateonactionsthatenhancetheabilityoftargetfirm’sabilitytogeneratecashflowtosatisfydebtservicerequirementsCIntendtoownthebusinessforverylongperiodsoftimeDManagethebusinesstomaximizereturntoequityinvestorsEAlloftheabove第4题FactorsthataremostlikelytocontributetothemagnitudeofpremiumspaidtoLBOtargetfirmshareholdersare

ATaxbenefitsBImprovedoperatingefficiencyCImproveddecisionmakingDA,B,andCEAandConly第5题Whichofthefollowingisnottrueofmergers?

ALiabilitiesandassetstransferautomaticallyBMaybesubjecttotransfertaxes.CNominorityshareholdersremain.DMaybetimeconsumingduetoneedforshareholderapprovals.EMayhavetopaydissentingshareholdersappraisedvalueofstockChap3第1题Eachofthefollowingistrueabouttheacquisitionsearchprocessexceptfor

AAcandidatesearchshouldstartwithidentifyingtheprimaryselectioncriteria.BThenumberofselectioncriteriashouldbeaslengthyaspossible.CAtaminimum,theprimarycriteriashouldincludetheindustryanddesiredsizeoftransaction.DThesizeofthetransactionmaybedefinedintermsofthemaximumpurchasepricetheacquireriswillingtopay.EAsearchstrategyentailstheuseofelectronicdatabases,tradepublications,andqueryingtheacquirer’slaw,banking,andaccountingfirmsforqualifiedcandidates.第2题WhatisthecorecompetenceunderlyingHondaCorporationproductoffering?

AProductdistributionBMarketingCInternalcombustionenginedesignDExteriordesignEOrganizationalstructure第3题WhichofthefollowingrepresentkeycomponentsoftheacquisitionprocessABusinessplanBIntegrationplanCSearchplanDNegotiationprocessEAlloftheabove正确答案：E第4题Whichofthefollowingtypesofdealswerecommoninthefirstmergerwave?AHorizontalBVerticalCOligopolisticDNoneoftheaboveEa,b,andc正确答案：E第5题Whichofthefollowingexamplesrepresentsthebestapplicationofafirm’sprimarycorecompetence?

AHondaMotorsmanufacturescars,motorcycles,lawnmowers,andsnowblowersBIBMprovidesbothsoftwareservicesandmanufacturescomputerhardwareCPepsiComanufacturesanddistributessoftdrinksandmanagesrestaurantchainsDMicrosoftsellsoperatingsystemsoftwareandaccesstotheinternetthroughitsMSNsubscriptionserviceEMcDonaldssellshamburgersandpizza.Chap4第1题Whichofthefollowingbestdefinesmarketsegmentation

ATheidentificationofcustomerswithcommoncharacteristicsandneedsBTheidentificationofcustomerswithheterogeneouscharacteristicsandneedsCThegroupingofcustomerswithdifferentcharacteristicsDTheprocessofreducinglargemarketsintosmallermarketswithoutregardtocustomercharacteristicsETheprocessofidentifyingthevariousmarketsthatcompriseanindustrywithoutregardtocustomercharacteristics第2题EuropeanantitrustpoliciesdifferfromthoseintheU.S.inwhatimportantway?

ATheyfocusontheimpactoncompetitorsBTheyfocusontheimpactonconsumersCTheyfocusonbothconsumersandcompetitorsDTheyfocusonsuppliersETheyfocusonconsumers,suppliers,andcompetitors第3题TheSecuritiesActof1933requirestheregistrationofallsecuritiesissuedtothepublic.

Suchregistrationrequireswhichofthefollowingdisclosures:

ADescriptionofthefirm’spropertiesandbusinessBDescriptionofthesecuritiesCInformationaboutmanagementDFinancialstatementsauditedbypublicaccountantsEAlloftheabove.正确答案：E第4题Researchhasshownthatthefollowingfactorscontributetotheoriginationofmergerwaves:AEconomicshocks

BRegulatoryshocksCTechnologicalshocksDa,b,andc

EBothbandc第5题AllofthefollowingareconsideredbusinessalliancesexceptforAJointventuresBMergersCMinorityinvestmentsDFranchisesELicensingagreementsChap5第1题Averticalmergerisoneinwhichthemergerparticipantsareusuallycompetitors.

第2题Antitrustlawsexisttopreventindividualcorporationsfromassumingtoomuchmarketpowersuchthattheycanlimittheiroutputandraisepriceswithoutconcernforhowtheircompetitorsmightreact.

第3题Insidertradinginvolvesbuyingorsellingsecuritiesbasedonknowledgenotavailabletothegeneralpublic.

第4题Afirm'scorecompetenciesrefertothoseskillswhicharerequiredtoproducethefirm’sprimaryproductsbut

whichhavelittleornoapplicationinproducingrelatedproducts.

第5题Thetargetedindustryandthemaximumsizeofthepotentialtransactionareoftenthemostimportantselectioncriteriausedinthesearchprocess.

Chap6第1题Thetargetcompanyisthefirmbeingsolicitedbytheacquiringcompany.第2题TheprimaryreasontheSarbanes-OxlyActof2002waspassedwastoeliminateinsidertrading.

第3题Aproxycontestisoneinwhichagroupofdissidentshareholdersattemptstoobtainrepresentationonafirm'sboardbysolicitingothershareholdersfortherighttovotetheirshares.

第4题Acorporatemissionstatementshouldbedefinedasbroadlyaspossiblesinceitseekstodescribethecorporation’sreasonforbeing,anditshouldnotexcludethefirmfrompursuinganysignificantopportunities.第5题Banksarecommonlyusedtoprovidebridgeortemporaryfinancingtopayalloraportionofthepurchasepriceandmeetpossibleworkingcapitalrequirementsuntilpermanentfinancingcanbefound.

Chap7第1题Whichofthefollowingisnotatypicalquestionthatmustbeaddressedindefiningscope?AWhichproductsareincludedBWhichproductsareexcludedCHowareprofitsarelossestobeallocatedDWhoreceivesrightstodistribute,manufacture,acquire,orlicenseorpurchasefutureproductsdevelopedbytheallianceEWhichpartnerwillsellwhichproductsinwhichmarkets第2题Whichoneofthefollowingisnotacharacteristicofacorporatelegalstructure?

AUnlimitedliabilityBDoubletaxationCContinuityofownershipDManagerialautonomyEEaseofraisingmoney第3题Realizingsynergyoftenrequiresspendingmoney.

Whichofthefollowingareexamplesofsuchexpenditures?AEmployeerecruitmentandtrainingexpensesBSeveranceexpensesCInvestmentinequipmenttoimproveemployeeproductivityDRedesigningworkflowEAlloftheabove正确答案：E第4题Theinitialofferpriceforthetargetfirmisdefinedas

ATheminimumpriceBThepresentvalueoftheminimumpriceplussomefractionofthepresentvalueofnetsynergyCThepresentvalueofnetsynergyplusthecurrentmarketvalueofthetargetfirmDThemaximumpricelesstheminimumpriceEThemaximumpricelessthepresentvalueofnetsynergy第5题Allofthefollowingaregenerallyconsideredstakeholdersintheintegrationprocessexceptfor

ASuppliersBEmployeesCCompetitorsDRegulatorsECustomersChap8第1题Whichistrueofthefollowing?

Awhiteknight

AIsagroupofdissidentshareholderswhichsidewiththebiddingfirmBIsagroupofthetargetfirm’scurrentshareholderswhichsidewithmanagementCIsathirdpartythatiswillingtoacquirethetargetfirmatthesamepriceasthebidderbutusuallyremovesthetarget’smanagementDIsafirmwhichisviewedbymanagementasamoreappropriatesuitorthanthebidderEIsafirmthatiswillingtoacquireonlyalargeblockofstockinthetargetfirm第2题Whichofthefollowingistrueaboutso-calledsharkrepellants?

ATheyareputinplacetostrengthentheboardBTheyincludepoisonpillsCOftenconsistoftherighttoissuegreenmailDInvolveWhiteKnightsEInvolvecorporaterestructuring第3题Accordingtothemanagemententrenchmenttheory,

AManagementresistancetotakeoverattemptsisanattempttoincreasetheproposedpurchasepricepremiumBManagementresistancetotakeoverattemptsisanattempttoextendtheirlongevitywiththetargetfirmCShareholderstendtobenefitwhenmanagementresiststakeoverattemptsDManagementattemptstomaximizeshareholdervalueEDescribestheprimaryreasontakeovertargetsresisttakeoverbids第4题Whichofthefollowingistrue?

Ahostiletakeoverattempt

AIsgenerallyfoundtobeillegalBIsonethatisresistedbythetarget’smanagementCResultsinlowerreturnstothetargetfirm’sshareholdersthanafriendlyattemptDUsuallysuccessfulESupportedbythetargetfirm’sboardanditsmanagement第5题Todecideifabusinessisworthmoretotheshareholderifsold,theparentfirmgenerallyconsidersallofthefollowingfactorsexceptfor

ATheafter-taxcashflowsofthebusinesstobesoldB

Theafter-taxsalevalueofthebusinesstobesoldCTheparent’scostofcapitalDAandBEA,B,andCChap9第1题Publicannouncementsofaproposedtakeoverareoftendesignedtoputpressureontheboardofthetargetfirm.

第2题Concernabouttheirfiduciaryresponsibilitytoshareholdersandshareholderlawsuitsoftenputspressureonatargetfirm'sboardofdirectorstoacceptanofferifitincludesasignificantpremiumtothetarget'scurrentshareprice.

第3题Incontactinglarge,publiclytradedfirms,itisusuallypreferabletomakeinitialcontactthroughanintermediaryandatthehighestlevelofthecompanypossible.

第4题Advertisinginthebusinessortradepressisgenerallyaveryefficientwaytolocateattractiveacquisitiontargetcandidates.第5题Focusoncustomersisgenerallyconsideredafactorcriticaltotheultimatesuccessorfailureofthemergeroracquisition.

Chap10第1题Allofthefollowingaregenerallytrueaboutcreatingneworganizationsexceptfor

ALearnfrompriororganizationalstrengthsandweaknessesBBusinessneedsshoulddrivestructureandnotthereverseCCentralizedorganizationsfacilitatethepaceoftheintegrationDThestructureemployedduringtheintegrationmustbetheoneusedinthelong-runESeniormanagersshouldbegivenresponsibilityforselectingtheirownsubordinates第2题Allofthefollowingaregenerallyconsideredstakeholdersintheintegrationprocessexceptfor

ASuppliersBEmployeesCCompetitorsDRegulatorsECustomers第3题Whichofthefollowingisgenerallynottrueaboutcommunicationduringtheintegrationperiod?

ACommunicationshouldbeasfrequentaspossibleBEmployeesshouldbeshelteredfrombadnewsCTheCEOofthecombinedfirmsshouldleadtheefforttocommunicatetoemployeesatalllevelsDRegularlyscheduledemployeemeetingsareoftenthebestwaytocommunicateprogresstoplanEThereasonsforchangingworkpracticesandcompensationmustbethoroughlyexplainedtoemployees第4题Whichofthefollowingisnottrueabouttheprimaryresponsibilitiesofthemanagementintegrationteam(MIT)?

ATheMITshoulddirectthedailyoperationsoftheindividualworkteamssetuptoimplementcertainactivities.BFocustheorganizationonmeetingongoingbusinesscommitmentsandoperationalperformancetargetsCThecreationofanearlywarningsystemtodeterminewhenperformancetargetsarelikelytobemissed.DEstablisharigorouscommunicationprogramEEstablishingamasterscheduleofwhatshouldbedonebywhomandbywhatdate.第5题Certainpostintegrationissuesarebestaddressedpriortotheclosing.

Theseincludeallofthefollowingexceptfor

AWhowillpayforemployeeseveranceexpensesBHowwillemployeepayrollbemanagedduringownershiptransitionCWhatwillbedonewithchecksfromcustomersthatthesellercontinuestoreceiveafterclosingDHowwillthesellerbereimbursedformoniesowedtosuppliersforproductssoldpriortoclosingEWhowillpayforhealthcareanddisabilityclaimsthatoftenarisejustbeforeabusinessissold?Chap11第1题ThecalculationoffreecashflowtoequityincludesallofthefollowingexceptforAOperatingincomeBPreferreddividendsCChangeinworkingcapitalDGrossplantandequipmentspendingEPrincipalrepayments第2题Certainpostintegrationissuesarebestaddressedpriortotheclosing.

Theseincludeallofthefollowingexceptfor

AWhowillpayforemployeeseveranceexpensesBHowwillemployeepayrollbemanagedduringownershiptransitionCWhatwillbedonewithchecksfromcustomersthatthesellercontinuestoreceiveafterclosingDHowwillthesellerbereimbursedformoniesowedtosuppliersforproductssoldpriortoclosingEWhowillpayforhealthcareanddisabilityclaimsthatoftenarisejustbeforeabusinessissold?第3题Whichofthefollowingrepresentadvantagesofthecomparablecompanies'valuationmethod?AUsesthemostaccuratemarket-basedvaluationatapointintimeBValuationsneedtobeadjustedtoreflectcontrolpremiums

CAdjustsforriskoffuturecashflowsDAdjustsforthetimingoffuturecashflowsEA&Bonly第4题AllofthefollowingaretrueaboutthemarginaltaxrateforthefirmexceptforAThemarginaltaxrateintheU.S.isusuallyabout40%.BTheeffectivetaxrateisusuallylessthanthemarginaltaxrate.COncetaxcreditshavebeenusedandtheabilitytofurtherdefertaxesexhausted,theeffectiveratecanexceedthemarginalrateatsomepointinthefuture.DItiscriticaltousetheeffectivetaxrateincalculatingafter-taxoperatingincomeinperpetuity.EItiscriticaltousethemarginalrateincalculatingafter-taxoperatingincomeinperpetuity.第5题Whichofthefollowingisnottrueaboutthevariablegrowthvaluationmodel?

AAssumesahighgrowthperiodfollowedbyastablegrowthperiod.BAssumesthatthediscountrateduringthehighandstablegrowthperiodsisthesame.CIsusedprimarilytoevaluatefirmsinhighgrowthindustries.DInvolvesthecalculationofaterminalvalue.ETheterminalvalueoftencomprisesasubstantialpercentageofthetotalpresentvalueofthefirm.Chap12第1题Allofthefollowingaretrueformarketbasedvaluationmethodsexceptforwhichofthefollowing?AAssumesthatmarketsareefficientsuchthatcurrentvaluesreflectalltheinformationcurrentlyknownaboutthebusinessBCurrentvaluesrepresentwhatawillingbuyerandsellerarewillingtopayforabusinessintheabsenceoffullinformationCMarketbasedmethodsarealwayssuperiortodiscountedcashflowtechniquesDIncludecomparablecompanyandrecenttransactionsmethodsEIncludethetangiblebookvalueapproach第2题Whichofthefollowingisnotgenerallyconsideredavaluationmethod?ADiscountedcashflowmethodBComparablecompanies’methodCShareexchangeratiomethodDLiquidationvaluemethodEComparabletransaction'smethod第3题Whichofthefollowingrepresentadvantagesofthecomparablecompanies'valuationmethod?AUsesthemostaccuratemarket-basedvaluationatapointintimeBValuationsneedtobeadjustedtoreflectcontrolpremiums

CAdjustsforriskoffuturecashflowsDAdjustsforthetimingoffuturecashflowsEA&Bonly第4题Whichofthefollowingisnottrueabouttheliquidation/break-upvaluationmethods?

AHighlydiversifiedcompaniesareoftenvaluedintermsofthesumofthestandalonevaluesoftheiroperatingunitsBThecalculationofsuchvaluesisheavilydependentontheskillofappraiserswhoareintimatelyfamiliarwiththeoperationstobeliquidated.CAssetscansometimesbeliquidatedinanorderlyfashion.DLegal,appraisal,andconsultingfeesmaycompriseasubstantialshareofthetotalproceedsofthesaleoftheassetsEa.Theliquidationvalueofmostofthefirm’sassetsisaboutthesame.正确答案：E第5题Whichofthefollowingstatementsaboutthecomparablecompanies'valuationmethodisnottrue?

ARequirestheuseoffirmsthatare“substantially”similartothetargetfirmBUsesmarketbasedratherthancashflowbasedvaluationsCOftenusedasthebasisofinvestmentbankerfairnessopinionsDGenerallyprovidesthemostaccuratevaluationmethodEProvidesanestimateofthetargetfirmatamomentintime.第6题Limitationsinapplyingthecomparablecompanies’methodofvaluationincludewhichofthefollowing?AFindingtrulycomparablecompaniesisdifficultBTheuseofmarket-basedmethodscanresultinsignificantunder-orovervaluationduringperiodsofdecliningorrisingstockmarketsCMarket-basedmethodscanbemanipulatedeasily,becausethemethodsdonotrequireaclearstatementofassumptionswithrespecttorisk,growth,orthetimingormagnitudeoffutureearningsandcashflows.DA,B,&CEA&Bonly第7题Indeterminingthepurchasepriceforanacquisitiontarget,whichoneofthefollowingvaluationmethodsdoesnotrequiretheadditionofapurchasepricepremium?ADiscountedcashflowmethodBComparablecompanies’methodCComparableindustries’methodDRecenttransactions’methodEA&Bonly第8题Whichofthefollowingistrueoftheequityvaluationmodel?ADiscountsfreecashflowtothefirmbytheweightedaveragecostofcapitalBDiscountsfreecashflowtoequitybythecostofequityCDiscountsfreecashflowthefirmbythecostofequityDDiscountsfreecashflowtoequitybytheweightedaveragecostofcapitalENoneoftheabove第9题Whichofthefollowingistrueoftheenterprisevaluationmodel?ADiscountsfreecashflowtothefirmbythecostofequityBDiscountsfreecashflowtothefirmbytheweightedaveragecostofcapitalCDiscountsfreecashflowtoequitybythecostofequityDDiscountsfreecashflowtoequitybytheweightedaveragecostofcapitalENoneoftheabove第10题Thezerogrowthmodelisaspecialcaseofwhatvaluationmodel?AVariablegrowthmodelBConstantgrowthmodelCDeltagrowthmodelDPerpetuityvaluationmodelE

NoneoftheaboveChap13第1题Whichofthefollowingisnottrueofa338election?

AItappliestoassetpurchasesonly.BItappliestostockpurchasesonly.CItallowsapurchaseofstocktobetreatedasanassetpurchasefortaxpurposes.DThebuyermustadoptthe338election.EThesellermustagreewiththeadoptionofthe338election.第2题Whichofthefollowingaredisadvantagesofanassetpurchase?

AAssetwrite-upBMayrequireconsentstoassignmentofcontractsCPotentialfordouble-taxationofbuyerDMaybesubjecttosales,use,andtransfertaxesEBandD第3题AcquiringCorpagreestobuy100%oftheoutstandingsharesofTargetCorpinashareforshareexchange.HowwouldAcquiringCorpdeterminehowmanynewshareofitsstockitwouldhavetoissue?AMultiplythepurchasepricepremiumpaidforTarget’sstockbythenumberofsharesoftargetstockoutstanding.BMultiplytheshareexchangeratiobythenumberofAcquirersharesoutstanding.CAddthenumberofAcquirerandTargetsharesoutstandingDMultiplytheshareexchangeratiobythenumberofTargetsharesoutstanding.EDividetheshareexchangeratiobythepurchasepricepremium第4题Theseller'sinsistencethatthebuyeragreetopurchaseitsstockmayencouragethebuyertoAofferalowerpurchasepricebecauseitisassuming

allofthetargetfirm'sliabilitiesBofferahigherpurchasepricebecauseitisassumingallofthetargetfirm'sliabilitiesCofferalowerpurchasepricebecauseitisreceivingallofthetarget'staxbenefitsDuseitsstockratherthancashtopurchasethetargetfirmEusecashratherthanitsstocktopurchasethetargetfirm第5题Whichoftherepresentdisadvantagesofacashpurchaseoftargetstock?

ABuyerresponsibleforknownandunknownliabilities.BBuyermayavoidneedtoobtainconsentstoassignmentsoncontracts.CNOLsandtaxcreditspasstothebuyer.DNostatesalestransfer,orusetaxeshavetobepaid.EEnablescircumventionoftarget'sboardintheeventahostiletakeoverisinitiated.第6题Whichofthefollowingistrueofcollararrangements?AAfixedorconstantshareexchangeratioisoneinwhichthenumberofacquirersharesexchangedforeachtargetshareisunchangedbetweenthesigningoftheagreementofpurchaseandsaleandclosing.

BCollaragreementsprovideforcertainchangesintheexchangeratiocontingentontheleveloftheacquirer’ssharepricearoundtheeffectivedateofthemerger.CAfixedexchangecollaragreementmayinvolveafixedexchangeratioaslongastheacquirer’ssharepriceremainswithinanarrowrange,calculatedasoftheeffectivedateofmerger.

DAfixedpaymentcollaragreementguaranteesthatthetargetfirmshareholderreceivesacertaindollarvalueintermsofacquirerstockaslongastheacquirer’sstockremainswithinanarrowrange,andafixedexchangeratioiftheacquirer’saveragestockpriceisoutsidetheboundsaroundtheeffectivedateofthemerger.

EAlloftheabove.正确答案：E第7题Formofpaymentrefersonlytotheacquirer’scommonstockusedtomakeupthepurchasepricepaidtotargetshareholders.

第8题Ifatransactioninvolvesacashpurchaseoftargetstock,thetargetcompany’staxcostorbasisintheacquiredstockorassetsisincreasedor“steppedup”automaticallytotheirfairmarketvalue(FMV),whichisequaltothepurchasepricepaidbytheacquirer.第9题Atransactionisusuallytaxabletothetargetfirm'sshareholders,iftheacquirer'sstockisusedtopurchaseatleast30%ofthetargetfirm'sstockorassets.

第10题Atransactiongenerallywillbeconsiderednon-taxabletothesellerortargetfirm'sshareholderifitinvolvesthepurchaseofthetarget’sstockorassetsforsubstantiallyallcash,notes,orsomeothernonequityconsideration.

Chap14第1题PremiumspaidtoLBOfirmshareholdersaverage

A20%B70%C5%DLessthantypicalmergersEMorethantypicalmergers正确答案：E第2题Whichofthefollowingistrueaboutpurchaseaccounting?

ACashandaccountsreceivable,reducedforbaddebtandreturns,arevaluedattheirvaluesonthebooksofthetargetbeforetheacquisition..BMarketablesecuritiesarevaluedattheirrealizablevalueaftertransactionscosts.CProperty,plantandequipmentarevaluedatfairmarketvalue.DIntangibleassetsarebookedattheirappraisedvalues.EAlloftheabove.正确答案：E第3题Theformofacquisitionreferstowhichofthefollowing:ATaxstatusofthetransactionBAcquisitionvehicleCWhatisbeingacquired,i.e.,stockorassetsDFormofpaymentEHowthetransactionwillbedisplayedforfinancialreportingpurposes第4题Whichofthefollowingmaybeusedasacquisitionvehicles?

APartnershipBLimitedliabilitycorporationCCorporateshellDESOPEAlloftheabove正确答案：E第5题AllofthefollowingaretrueaboutthemarginaltaxrateforthefirmexceptforAThemarginaltaxrateintheU.S.isusuallyabout40%.BTheeffectivetaxrateisusuallylessthanthemarginaltaxrate.COncetaxcreditshavebeenusedandtheabilitytofurtherdefertaxesexhausted,theeffectiveratecanexceedthemarginalrateatsomepointinthefuture.DItiscriticaltousetheeffectivetaxrateincalculatingafter-taxoperatingincomeinperpetuity.EItiscriticaltousethemarginalrateincalculatingafter-taxoperatingincomeinperpetuity.Chap15第1题Selectingtheappropriatefinancingstructureforthecombinedfirmsrequiresconsiderationofwhichofthefollowing:ATheimpactonthecombinedfirm'sEPSBPotentialviolationofloancovenantsCTheextenttowhichtheprimaryneedsofboththebuyer'sandseller'sshareholdersaresatisfied.DAandBonlyEA,B,andC正确答案：E第2题Whichofthefollowingarecommonlyusedsourcesoffundingforleveragedbuyouts?Aa.SecureddebtBUnsecureddebtCPreferredstockDSellerfinancingEAlloftheabove正确答案：E第3题Whichofthefollowingisnottrueaboutjunkbonds?

AJunkbondsareeitherunratedorratedbelowinvestmentgradebythecreditratingagenciesBTypicallyyieldabout1-2percentagepointsbelowyieldsonU.S.Treasurydebtofcomparablematurities.CJunkbondsarecommonlyusedsourceof“permanent”financinginLBOtransactionsDDuringrecessions,junkbonddefaultratesoftenexceed10%EJunkbonddefaultriskonnon-investmentgradebondstendstoincreasethelongertheelapsedtimesincetheoriginalissuedateofthebonds第4题Assetbasedlendingiscommonlyusedtofinanceleveragedbuyouts.

Whichofthefollowingisnottrueaboutsuchfinancing?

ATheborrowergenerallypledgestangibleassetsascollateral.BLenderslookatthetargetfirm'sassetsastheirprimaryprotection.CBankloansaresecuredfrequentlybyreceivablesandinventory.DLoansmaturinginmorethanoneyearareoftenreferredtoastermloans.EThetargetfirm'smostliquidassetsgen