In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members.  This is an example of which of the following? Group of answer choices white knight tender offer street sweep

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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  1. In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members.  This is an example of which of the following?

Group of answer choices

white knight

tender offer

street sweep

 

  1. Which ONE of the following is not correct regarding the possible benefits of an acquisition?

Group of answer choices

revenue enhancement

lower taxes

cost reduction

increased capital requirements

 

  1. The most obvious way to hedge against ___________________ in currency conversions is to enter into a forward exchange agreement to lock in an exchange rate.

Group of answer choices

short-term exposure

International Fisher effect

long-term exposure

political risk

 

  1. True/ False. The International Fisher effect states that the real rates are equal across countries.

Group of answer choices

True

False

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