第1題Whichofthefollowingisnottrueofmergers?

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

AMorethantwofirmsareinvolvedinthecombinationBOnepartytothecombinationdisappearsCAllpartiestothecombinationdisappearDTheentityresultingfromthecombinationassumesownershipoftheassetsandliabilitiesoftheacquiringfirmonly.EOnecompanybecomesawhollyownedsubsidiaryoftheother.第3題Allofthefollowingareoftencitedasfactorscriticaltotheultimatesuccessoftheintegrationeffortexceptfor

APlancarefully,actquicklyBTheuseofprojectmanagementtechniquesCEarlycommunicationfromthetopoftheorganizationDSalaryandbenefitreductionsformanyemployeesoftheacquiredcompanyinordertorealizecostsavingsEMakingthetoughdecisionsasearlyaspossible第4題Eachofthefollowingistrueabouttheacquisitionsearchprocessexceptfor

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

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

ATaxbenefitsBImprovedoperatingefficiencyCImproveddecisionmakingDA,B,andCEAandConly第5題Whichofthefollowingisnottrueofmergers?

ALiabilitiesandassetstransferautomaticallyBMaybesubjecttotransfertaxes.CNominorityshareholdersremain.DMaybetimeconsumingduetoneedforshareholderapprovals.EMayhavetopaydissentingshareholdersappraisedvalueofstockChap3第1題Eachofthefollowingistrueabouttheacquisitionsearchprocessexceptfor

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

AProductdistributionBMarketingCInternalcombustionenginedesignDExteriordesignEOrganizationalstructure第3題WhichofthefollowingrepresentkeycomponentsoftheacquisitionprocessABusinessplanBIntegrationplanCSearchplanDNegotiationprocessEAlloftheabove正確答案：E第4題Whichofthefollowingtypesofdealswerecommoninthefirstmergerwave?AHorizontalBVerticalCOligopolisticDNoneoftheaboveEa,b,andc正確答案：E第5題Whichofthefollowingexamplesrepresentsthebestapplicationofafirm’sprimarycorecompetence?

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

ATheidentificationofcustomerswithcommoncharacteristicsandneedsBTheidentificationofcustomerswithheterogeneouscharacteristicsandneedsCThegroupingofcustomerswithdifferentcharacteristicsDTheprocessofreducinglargemarketsintosmallermarketswithoutregardtocustomercharacteristicsETheprocessofidentifyingthevariousmarketsthatcompriseanindustrywithoutregardtocustomercharacteristics第2題EuropeanantitrustpoliciesdifferfromthoseintheU.S.inwhatimportantway?

ATheyfocusontheimpactoncompetitorsBTheyfocusontheimpactonconsumersCTheyfocusonbothconsumersandcompetitorsDTheyfocusonsuppliersETheyfocusonconsumers,suppliers,andcompetitors第3題TheSecuritiesActof1933requirestheregistrationofallsecuritiesissuedtothepublic.

Suchregistrationrequireswhichofthefollowingdisclosures:

ADescriptionofthefirm’spropertiesandbusinessBDescriptionofthesecuritiesCInformationaboutmanagementDFinancialstatementsauditedbypublicaccountantsEAlloftheabove.正確答案：E第4題Researchhasshownthatthefollowingfactorscontributetotheoriginationofmergerwaves:AEconomicshocks

BRegulatoryshocksCTechnologicalshocksDa,b,andc

EBothbandc第5題AllofthefollowingareconsideredbusinessalliancesexceptforAJointventuresBMergersCMinorityinvestmentsDFranchisesELicensingagreementsChap5第1題Averticalmergerisoneinwhichthemergerparticipantsareusuallycompetitors.

第2題Antitrustlawsexisttopreventindividualcorporationsfromassumingtoomuchmarketpowersuchthattheycanlimittheiroutputandraisepriceswithoutconcernforhowtheircompetitorsmightreact.

第3題Insidertradinginvolvesbuyingorsellingsecuritiesbasedonknowledgenotavailabletothegeneralpublic.

第4題Afirm'scorecompetenciesrefertothoseskillswhicharerequiredtoproducethefirm’sprimaryproductsbut

whichhavelittleornoapplicationinproducingrelatedproducts.

第5題Thetargetedindustryandthemaximumsizeofthepotentialtransactionareoftenthemostimportantselectioncriteriausedinthesearchprocess.

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

第3題Aproxycontestisoneinwhichagroupofdissidentshareholdersattemptstoobtainrepresentationonafirm'sboardbysolicitingothershareholdersfortherighttovotetheirshares.

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

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

AUnlimitedliabilityBDoubletaxationCContinuityofownershipDManagerialautonomyEEaseofraisingmoney第3題Realizingsynergyoftenrequiresspendingmoney.

Whichofthefollowingareexamplesofsuchexpenditures?AEmployeerecruitmentandtrainingexpensesBSeveranceexpensesCInvestmentinequipmenttoimproveemployeeproductivityDRedesigningworkflowEAlloftheabove正確答案：E第4題Theinitialofferpriceforthetargetfirmisdefinedas

ATheminimumpriceBThepresentvalueoftheminimumpriceplussomefractionofthepresentvalueofnetsynergyCThepresentvalueofnetsynergyplusthecurrentmarketvalueofthetargetfirmDThemaximumpricelesstheminimumpriceEThemaximumpricelessthepresentvalueofnetsynergy第5題Allofthefollowingaregenerallyconsideredstakeholdersintheintegrationprocessexceptfor

ASuppliersBEmployeesCCompetitorsDRegulatorsECustomersChap8第1題Whichistrueofthefollowing?

Awhiteknight

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

ATheyareputinplacetostrengthentheboardBTheyincludepoisonpillsCOftenconsistoftherighttoissuegreenmailDInvolveWhiteKnightsEInvolvecorporaterestructuring第3題Accordingtothemanagemententrenchmenttheory,

AManagementresistancetotakeoverattemptsisanattempttoincreasetheproposedpurchasepricepremiumBManagementresistancetotakeoverattemptsisanattempttoextendtheirlongevitywiththetargetfirmCShareholderstendtobenefitwhenmanagementresiststakeoverattemptsDManagementattemptstomaximizeshareholdervalueEDescribestheprimaryreasontakeovertargetsresisttakeoverbids第4題Whichofthefollowingistrue?

Ahostiletakeoverattempt

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

ATheafter-taxcashflowsofthebusinesstobesoldB

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

第2題Concernabouttheirfiduciaryresponsibilitytoshareholdersandshareholderlawsuitsoftenputspressureonatargetfirm'sboardofdirectorstoacceptanofferifitincludesasignificantpremiumtothetarget'scurrentshareprice.

第3題Incontactinglarge,publiclytradedfirms,itisusuallypreferabletomakeinitialcontactthroughanintermediaryandatthehighestlevelofthecompanypossible.

第4題Advertisinginthebusinessortradepressisgenerallyaveryefficientwaytolocateattractiveacquisitiontargetcandidates.第5題Focusoncustomersisgenerallyconsideredafactorcriticaltotheultimatesuccessorfailureofthemergeroracquisition.

Chap10第1題Allofthefollowingaregenerallytrueaboutcreatingneworganizationsexceptfor

ALearnfrompriororganizationalstrengthsandweaknessesBBusinessneedsshoulddrivestructureandnotthereverseCCentralizedorganizationsfacilitatethepaceoftheintegrationDThestructureemployedduringtheintegrationmustbetheoneusedinthelong-runESeniormanagersshouldbegivenresponsibilityforselectingtheirownsubordinates第2題Allofthefollowingaregenerallyconsideredstakeholdersintheintegrationprocessexceptfor

ASuppliersBEmployeesCCompetitorsDRegulatorsECustomers第3題Whichofthefollowingisgenerallynottrueaboutcommunicationduringtheintegrationperiod?

ACommunicationshouldbeasfrequentaspossibleBEmployeesshouldbeshelteredfrombadnewsCTheCEOofthecombinedfirmsshouldleadtheefforttocommunicatetoemployeesatalllevelsDRegularlyscheduledemployeemeetingsareoftenthebestwaytocommunicateprogresstoplanEThereasonsforchangingworkpracticesandcompensationmustbethoroughlyexplainedtoemployees第4題Whichofthefollowingisnottrueabouttheprimaryresponsibilitiesofthemanagementintegrationteam(MIT)?

ATheMITshoulddirectthedailyoperationsoftheindividualworkteamssetuptoimplementcertainactivities.BFocustheorganizationonmeetingongoingbusinesscommitmentsandoperationalperformancetargetsCThecreationofanearlywarningsystemtodeterminewhenperformancetargetsarelikelytobemissed.DEstablisharigorouscommunicationprogramEEstablishingamasterscheduleofwhatshouldbedonebywhomandbywhatdate.第5題Certainpostintegrationissuesarebestaddressedpriortotheclosing.

Theseincludeallofthefollowingexceptfor

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

Theseincludeallofthefollowingexceptfor

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

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

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

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

AHighlydiversifiedcompaniesareoftenvaluedintermsofthesumofthestandalonevaluesoftheiroperatingunitsBThecalculationofsuchvaluesisheavilydependentontheskillofappraiserswhoareintimatelyfamiliarwiththeoperationstobeliquidated.CAssetscansometimesbeliquidatedinanorderlyfashion.DLegal,appraisal,andconsultingfeesmaycompriseasubstantialshareofthetotalproceedsofthesaleoftheassetsEa.Theliquidationvalueofmostofthefirm’sassetsisaboutthesame.正確答案：E第5題Whichofthefollowingstatementsaboutthecomparablecompanies'valuationmethodisnottrue?

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

NoneoftheaboveChap13第1題Whichofthefollowingisnottrueofa338election?

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

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

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

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

BCollaragreementsprovideforcertainchangesintheexchangeratiocontingentontheleveloftheacquirer’ssharepricearoundtheeffectivedateofthemerger.CAfixedexchangecollaragreementmayinvolveafixedexchangeratioaslongastheacquirer’ssharepriceremainswithinanarrowrange,calculatedasoftheeffectivedateofmerger.

DAfixedpaymentcollaragreementguaranteesthatthetargetfirmshareholderreceivesacertaindollarvalueintermsofacquirerstockaslongastheacquirer’sstockremainswithinanarrowrange,andafixedexchangeratioiftheacquirer’saveragestockpriceisoutsidetheboundsaroundtheeffectivedateofthemerger.

EAlloftheabove.正確答案：E第7題Formofpaymentrefersonlytotheacquirer’scommonstockusedtomakeupthepurchasepricepaidtotargetshareholders.

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

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

Chap14第1題PremiumspaidtoLBOfirmshareholdersaverage

A20%B70%C5%DLessthantypicalmergersEMorethantypicalmergers正確答案：E第2題Whichofthefollowingistrueaboutpurchaseaccounting?

ACashandaccountsreceivable,reducedforbaddebtandreturns,arevaluedattheirvaluesonthebooksofthetargetbeforetheacquisition..BMarketablesecuritiesarevaluedattheirrealizablevalueaftertransactionscosts.CProperty,plantandequipmentarevaluedatfairmarketvalue.DIntangibleassetsarebookedattheirappraisedvalues.EAlloftheabove.正確答案：E第3題Theformofacquisitionreferstowhichofthefollowing:ATaxstatusofthetransactionBAcquisitionvehicleCWhatisbeingacquired,i.e.,stockorassetsDFormofpaymentEHowthetransactionwillbedisplayedforfinancialreportingpurposes第4題Whichofthefollowingmaybeusedasacquisitionvehicles?

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

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

Whichofthefollowingisnottrueaboutsuchfinancing?

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