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1) A tender offer: D)has shares that are typically sold at a discount to the acq

ID: 2724468 • Letter: 1

Question

1) A tender offer:

D)has shares that are typically sold at a discount to the acquiring firm   

2) The hedging approach:

D) is useful only for analyzing working capital

3) The "synergistic effect" of a merger involves:

D) the sudden increase in the stock price of the target firm during a tender offer

4) The PAC system is used often by:

A) none of the above B) may result in high costs of acquisition if the target firm's management attempts to block the purchase C) must be approved by the target firm's management

D)has shares that are typically sold at a discount to the acquiring firm   

2) The hedging approach:

A) is only theoretically valid B) none of the above C) can be used to guide decisions regarding the appropriate use of short-term credit

D) is useful only for analyzing working capital

3) The "synergistic effect" of a merger involves:

A) the organizational compatability of the two firms involved in a merger B) the psychological impact of a merger upon the investment community C) the decision as to whether to let existing managers stay on after the merger

D) the sudden increase in the stock price of the target firm during a tender offer

4) The PAC system is used often by:

A) insurance companies B) appliance stores C) automobile dealers D) jewelers

Explanation / Answer

Question 1 option C is correct Question 2 option C is correct Question 3 option A is correct Question 4 option D is correct