Exam 23: Options

When shareholders attempt to garner additional votes in an attempt to oust management, it is called a:

Which of the following statements seems most correct about a firm that has made a cash tender offer for two million shares of ABC Corp.at a price of $20, which is $6 higher than ABC's current value?

A spin-off is an action in which:

Which of the following is the most appropriate reason for an acquiring firm's shareholders to prefer using stock financing for acquisitions?

Which of the following statements is correct concerning the cost of two firms merging? The cost:

Large-scale efforts to make a firm less appealing in the midst of a potential merger are known as:

When shareholders are issued rights to buy shares if a bidder acquires a large stake in the firm is best defined as:

The benefits of merger is easier when the merging companies:

In what ways do companies change the composition of ownership and management?

In vertical mergers, the goal is to benefit from the economies of scale.

Which of the following is not a method of changing the management of a firm?

A merger between two firms in a similar industry is an example of vertical merger.

In the case of a merger that is stock financed, the assumed merger cost may be incorrect if the:

When an outside group acquires a firm, primarily through the use of borrowed funds, the acquisition is known as a:

If the shareholders of an acquired firm capture all of the merger's gain, then the:

A tender offer is an attempt by outsiders to buy the stock of the target firm's shareholders with the help of target firm's managers.

Firms with substantial amounts of free-cash-flow often discover that:

Why is it not sufficient to state that a merger should occur simply because the economic gains are positive?

The merger between Chase Manhattan and Chemical bank is an example of:

Firms A and B are each worth $50 million, but generate a $20 million gain when merged.If the cost of the merger was $5 million, how much did Firm A pay for Firm B?