29. Assuming no structural protections for the acquirer, in which structure does

Question

29. Assuming no structural protections for the acquirer, in which structure does the acquirer (2 points) assume the full risk of a decline in its share price? a. b. c. Fixed exchange ratio Floating exchange ratio Fixed exchange ratio and floating exchange ratio involve the same risk for the acquirer Neither choice is correct d. 30. Which of the following are the MOST GENERIC AND WIDELY USED multiples in (2 points) Precedent Transactions Analysis? CIRCLE ALL THAT APPLY. a. b. c. d. Enterprise Value / Net Income Enterprise Value / LTM EBITDA Offer Price / LTM Diluted Earnings Per Share Offer Price / LTM EBITDA 31. The Premiums Paid Analysis is based upon the stock price of the company one or more days before the of the transaction. (2 points) BFIN 7225 - Final Exam - Fall 2017 20171030.docx Page 6 of 10

Explanation / Answer

29.

Assuming no structural protection for acquirer, in floating exchange ratio structure dies the acquirer assume the full risk of a decline in its price.

Option (B) is correct answer.

30.

Enterprise value dividend by LTM EBITDA and offer price dividend by Diluted earnings per share, P/E ratio is most Generic and widely used multiples in precedent transaction analysis.

Option (B) and Option (C) is correct answer.

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