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Which of the following statements is most CORRECT? Oa. The primary rationale for most operating mergers is synergy. Ob. In most mergers, the benefits of synergy and the premium the acquirer pays over the market price are summed and then divided equally between the shareholders of the acquiring and target firms. Oc. Financial theory says that the choice of how to pay for a merger is really irrelevant because, although it may affect the firm's capital structure, it will not affect its overall required rate of return. Od. The basic rationale for any financial merger is synergy and, thus, the estimation of pro forma cash flows is the single most important part of the analysis. Oe. The acquiring firm's required rate of return in most horizontal mergers will not be affected, because the 2 firms will have similar betas.

Choose the correct. What is a statutory merger?a. A merger approved by the Securities and Exchange Commission.b. An acquisition involving the purchase of both stock and assets.c. A takeover completed within one year of the initial tender offer.d. A business combination in which only one company continues to exist as a legal entity.

Which one of the following statements correctly applies to a merger?   Multiple Choice   The acquiring firm does not have to seek approval for the merger from its shareholders.   The shareholders of the target firm must approve the merger.   The acquiring firm will acquire the assets but not the debt of the target firm.   The merged firm will have a new company name.   The titles to individual assets of the target firm must be transferred into the acquiring firm's name.

Which of the following is correct in a Forward Triangular Merger. Cash and stock may be used as consideration A combination of parent and subsidiary stock may be used. Target shareholder's approval is not necessary. At least 40% of targets assets must be acquired.

Hi. Need help with verifying if answers are correct please. Thank you!

The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1] Both horizontal and product-extension types of M&A involve catering to the same market group before and after the M&A. [S2] A vertical M&A involves a supplier or buyer of the acting firm as the target firm.a. Only S1 is true.b. Only S2 is true.c. Neither is true.d. Both are true.

The absorption of one firm by another such that the acquired firm no longer exists as a separate entity is called a: Question 1Select one: a. acquisition of stock. b. tender offer. c. shared agreement. d. consolidation. e. merger.

Look at a recent example of a merger announcement, and log on to the website of the acquiring company. What reasons does the acquirer give for buying the target? How does it intend to pay for the target—with cash, shares, or a mixture of the two? Can you work out how much the target’s shareholders will gain from the offer? Is it more or less than would be the case for an average merger? Now log on to finance.yahoo.com and find out what happened to the stock price of the acquiring company when the merger was announced. Were shareholders pleased with the announcement?

Bentley Corporation and Rolls Manufacturing are considering a merger. The possible states of the economy and each company's value in that state are shown here: State Boom Probability Bentley .70 $ 330,000 130,000 Recession .30 Rolls $300,000 100,000 Bentley currently has a bond issue outstanding with a face value of $145,000. Rolls is an all-equity company. a. What is the value of each company before the merger? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Value of Bentley Value of Rolls

Do solve it as soon as possible    Identify which statement is not correct. In a takeover bid to acquire a part or all shares in another company: Select one: a. Friendly merger reduces the chance of overpaying for target’s shares. b. Successful acquirer is likely to pay more for target’s shares in scenarios that include multiple rival bidders. c. Target company management would not accept an offer where the consideration for target’s shares exceeds the NPV of the merger. d. Hostile takeover may result in overpaying for target’s shares.

Select all that is true. Question 19Select one or more: a. LBOs are an example of a financial merger undertaken to create a high-debt private corporation with improved cash flow and value. b. Vertical merger is a merger of two firms in the same line of business. c. The synergy of merger is the economies of scale resulting from the merged firms' lower overhead. d. Consolidation involves the combination of two or more firms, and the resulting firm maintains the identity of one of the firms.

Which of the following statements is most CORRECT? Oa. Managers who purchase other firms often assert that the new combined firm will enjoy benefits from diversification, including more stable earnings. However, since shareholders are free to diversify their own holdings, and at what's probably a lower cost, diversification benefits is generally not a valid motive for a publicly held firm. Ob. The smaller the synergistic benefits of a particular merger, the greater the scope for striking a bargain in negotiations, and the higher the probability that the merger will be completed. Oc. Since mergers are frequently financed by debt rather than equity, a lower cost of debt or a greater debt capacity are rarely relevant considerations when considering a merger. Od. Operating economies are never a motive for mergers. Oe. Tax considerations often play a part in mergers. If one firm has excess cash, purchasing another firm exposes the purchasing firm to additional taxes. Thus, firms with excess…

If stock market returns for merged firms are positive, which motives for horizontal merger would be supported? If stock market returns were negative, which motives would be supported? POR

Which of the following statements regarding merger deals is (are) correct? Choose all correct answer(s) On average, the price of the target increases substantially, while the price of the bidder does not increase by much. If the premium paid by the bidder exceeds the expected additional value to be created through the merger, the bidder's share price is likely to drop on the announcement of the bid. A bidder can often acquire a public-listed company for less than its current market value. Synergies are by far the most common justification that bidders give for the premium they pay for a target.

Compare and contrast the following theories of Mergers – Synergy, Hubris and Agency.   (Context: Not everyone is convinced that Mergers and Acquisition activity is a good use either of societal resources or acquiring company resources. eg One of the few very firm facts of merger research is that target company shareholders almost always do extremely well from takeover. By contrast, it’s not at all clear that M and A is beneficial for acquiring company shareholders. So what motivates acquiring companies and are there cheaper less risky ways to achieve the same corporate objectives?)

Hello, please show work for B step by step with calculations.  do not give answer in image

21. Which of the following are generally true about wealth gains or losses to stockholders following a merger? A. Stockholders of the target firm have zero or negative wealth gains B. Stockholders of the acquiring firm have zero or negative wealth gains C. Stockholders of competing firms have zero or negative wealth gains D. Stockholders of the target firm have positive wealth gains E. Both B and D 22. Empirical research about the method payment for mergers has shown that A. Returns for acquiring firm stockholders are much lower when cash is used for payment B. Returns for target firm stockholders are much lower when cash is used for payment C. Returns for competing firms are much lower when cash is used for payment D. Returns for acquiring firm stockholders are much higher when cash is used for payment E. None of the above 23. If a firm wishes to expand geographically, it is often preferable to do it by acquiring an existing firm rather than greenfield entry, because A. The…