Podcast
Questions and Answers
A change in the corporate charter making it more difficult for the firm to be acquired by
increasing the percentage of shareholders that must approve a merger offer is called a:
A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a:
- supermajority amendment (correct)
- standstill agreement
- greenmail provision
- poison pill amendment
The positive incremental net gain associated with the combination of two firms through a
merger or acquisition is called:
The positive incremental net gain associated with the combination of two firms through a merger or acquisition is called:
- goodwill
- the merger cost
- the consolidation effect
- synergy (correct)
Which of the following is an advantage of share-for-share mergers?
Which of the following is an advantage of share-for-share mergers?
- They allow target shareholders to see exactly how much is being offered for the target company.
- They will not lead to a dilution of target company’s EPS
- . They are less expensive compared to cash offers
- They do not incur transaction costs related to re-investing (correct)
A contract wherein the bidding firm agrees to limit its holdings in the target firm is called
a:
A contract wherein the bidding firm agrees to limit its holdings in the target firm is called a:
Which of the following is NOT an example of a revenue synergy arising from a horizontal
merger?
Which of the following is NOT an example of a revenue synergy arising from a horizontal merger?
In a Pac-Man Defence,
In a Pac-Man Defence,
Which of the following is most likely to be a benefit of two very different companies merging?
Which of the following is most likely to be a benefit of two very different companies merging?
Which of the following is NOT an example of a cost synergy arising from a horizontal merger
A. A bank closing branches where there are two in one small town
Which of the following is NOT an example of a cost synergy arising from a horizontal merger A. A bank closing branches where there are two in one small town
In the case of a predatory takeover, the people likely to gain most in the short term are:
In the case of a predatory takeover, the people likely to gain most in the short term are:
Generally speaking managers are most likely to put up a defence against a take-over because:
Generally speaking managers are most likely to put up a defence against a take-over because:
