13. Jones company acquires the Mathis company. Jones is in a totally unrelated b
ID: 2655278 • Letter: 1
Question
13. Jones company acquires the Mathis company. Jones is in a totally unrelated business to mathis. This is an example of: a. vertical integration b. horizontal integration c. diversification d. none of the above
14. The bond’s yield to maturity calculation is similar to a __________ calculation
a. NPV b. IRR c. payback d. discounted payback e. none of the above
15. If the bonds coupon rate is equal to the general interest rates in the market, the bond will sell at a: a. premium b. discount c. neither A nor B
16. synergy may result from: a. enhanced cash flow b. diversification c.excess cash d. all of the above
Explanation / Answer
13. Since both the merging companies are unrelated, this is an example of diversification. Hence, option C is correct.
14. The bonds ytm calculation is similar to calculation of IRR as both calculate a percentage value. hence correct option is B.
15. When both coupon rate and market interest rate is same, the bond sells at par that is neither at discount nor at premium.
16.Synergy may result from diversification. Option b is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.