Question 1

Sell-offs of their parts supplier units enabled GM and Ford to successfully use sell-offs to avoid union compensated-related liabilities of those units.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following are examples of pension-related employee benefit plans?

Accepted Answer

A)  Defined benefit 
B)  Defined contribution 
C)  Profit sharing 
D)  All the above 
A)  Defined benefit 
B)  Defined contribution 
C)  Profit sharing 
D)  All the above D

Question 3

Many studies covering a quarter of a century document the positive shareholder wealth effects of sell-offs.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following are common reasons cited for selling off prior acquisitions?

Accepted Answer

A)  Poor fit 
B)  Poor performance 
C)  Cash flow needs 
D)  All the above 
E)  None of the above 
A)  Poor fit 
B)  Poor performance 
C)  Cash flow needs 
D)  All the above 
E)  None of the above

Question 5

Answer: The sale of Miller by Altria accomplished what:

Accepted Answer

A)  Narrowed Altria's strategic focus 
B)  Improved Altria's overall financial performance 
C)  Enabled Inbev to gain market share 
D)  All the above 
E)  Both a and b f . Both a and c 
A)  Narrowed Altria's strategic focus 
B)  Improved Altria's overall financial performance 
C)  Enabled Inbev to gain market share 
D)  All the above 
E)  Both a and b f . Both a and c

Question 6

The sell-offs by Starwood following its acquisition of Taittinger were motivated by:

Accepted Answer

A)  Eliminating a nonstrategic component 
B)  Eliminating a poorly performing unit 
C)  Raising cash to pay off debt 
D)  None of the above 
A)  Eliminating a nonstrategic component 
B)  Eliminating a poorly performing unit 
C)  Raising cash to pay off debt 
D)  None of the above

Question 7

In a spin-off the entity being separated from the parent company often is assigned specific debt attributable to it as part of the sale process.

Accepted Answer

A) True 
 B)False

Question 8

Kaplan and Weisbach found that diversifying deals were which of the following with respect to the likelihood of subsequent divestiture?

Accepted Answer

A)  Four times more likely to be divested 
B)  Equally likely 
C)  Two times less likely 
D)  None of the above 
A)  Four times more likely to be divested 
B)  Equally likely 
C)  Two times less likely 
D)  None of the above

Question 9

Boise Cascade abandoned its core business and focused on the business of Office Max, which it had previously acquired.

Accepted Answer

A) True 
 B)False

Question 10

A defensive spin-off is where a target sells off a division to make the company less attractive to bidders.

Accepted Answer

A) True 
 B)False

Question 11

In the United States, in order for a spin-off to be nontaxable, the following must be the case:

Accepted Answer

A)  Both the parent company and the spun-off entity must be in business for at least ﬁve years before the restructuring. 
B)  The subsidiary must be at least 80% owned by the parent company. 
C)  The parent company and the spun-off entity must be in the same industry 
D)  Both a and b 
E)  Both b and c 
A)  Both the parent company and the spun-off entity must be in business for at least ﬁve years before the restructuring. 
B)  The subsidiary must be at least 80% owned by the parent company. 
C)  The parent company and the spun-off entity must be in the same industry 
D)  Both a and b 
E)  Both b and c

Question 12

Asian spin-off volume:

Accepted Answer

A)  Historically follows the same pattern as the U.S. spin-off volume 
B)  Followed the same pattern as European spin-off volume 
C)  Has declined in the past when spin-offs rose in Europe and the United States 
D)  None of the above True or False Questions 
A)  Historically follows the same pattern as the U.S. spin-off volume 
B)  Followed the same pattern as European spin-off volume 
C)  Has declined in the past when spin-offs rose in Europe and the United States 
D)  None of the above True or False Questions

Question 13

Answer: Research, such as research by Skantz and Marchesini, as well as that of Hite, Owers, and Rogers found that unlike divestitures, announcements of voluntary liquidations were not associated with positive shareholder wealth effects.

Accepted Answer

A) True 
 B)False

Question 14

If a public company issues stock in its own subsidiary, these shares do not have to be registered by the SEC in order to be publicly traded as the parent company's shares are already registered.

Accepted Answer

A) True 
 B)False

Question 15

The trend in European sell-offs is opposite that of the United States.

Accepted Answer

A) True 
 B)False

Question 16

The following describes reverse synergy:

Accepted Answer

A)  2 + 2 = 5 
B)  2 + 2 = 4 
C)  4 - 1 = 5 
D)  None of the above 
A)  2 + 2 = 5 
B)  2 + 2 = 4 
C)  4 - 1 = 5 
D)  None of the above

Question 17

First Data shareholders were able to realize increased value when Western Union was spun off.

Accepted Answer

A) True 
 B)False

Question 18

The trend in the number of divestitures and sell-offs tends to be opposite that of M&As and the movement in the economy in general.

Accepted Answer

A) True 
 B)False

Question 19

Involuntary divestitures generally have what effects?

Accepted Answer

A)  Positive 
B)  Negative 
C)  No consistent effects 
D)  None of the above 
A)  Positive 
B)  Negative 
C)  No consistent effects 
D)  None of the above

Question 20

Which of the following studies showed positive shareholder wealth effects for sell-offs?

Accepted Answer

A)  Cusatis, Miles, and Wooldridge 
B)  JP Morgan 
C)  Kudla and McInish 
D)  All the above 
E)  Both a and c 
A)  Cusatis, Miles, and Wooldridge 
B)  JP Morgan 
C)  Kudla and McInish 
D)  All the above 
E)  Both a and c

Sell-offs of their parts supplier units enabled GM and Ford to successfully use sell-offs to avoid union compensated-related liabilities of those units.

Which of the following are examples of pension-related employee benefit plans?

Many studies covering a quarter of a century document the positive shareholder wealth effects of sell-offs.

Which of the following are common reasons cited for selling off prior acquisitions?

Answer: The sale of Miller by Altria accomplished what:

The sell-offs by Starwood following its acquisition of Taittinger were motivated by:

In a spin-off the entity being separated from the parent company often is assigned specific debt attributable to it as part of the sale process.

Kaplan and Weisbach found that diversifying deals were which of the following with respect to the likelihood of subsequent divestiture?

Boise Cascade abandoned its core business and focused on the business of Office Max, which it had previously acquired.

A defensive spin-off is where a target sells off a division to make the company less attractive to bidders.

In the United States, in order for a spin-off to be nontaxable, the following must be the case:

Asian spin-off volume:

Answer: Research, such as research by Skantz and Marchesini, as well as that of Hite, Owers, and Rogers found that unlike divestitures, announcements of voluntary liquidations were not associated with positive shareholder wealth effects.

If a public company issues stock in its own subsidiary, these shares do not have to be registered by the SEC in order to be publicly traded as the parent company's shares are already registered.

The trend in European sell-offs is opposite that of the United States.

The following describes reverse synergy:

First Data shareholders were able to realize increased value when Western Union was spun off.

The trend in the number of divestitures and sell-offs tends to be opposite that of M&As and the movement in the economy in general.

Involuntary divestitures generally have what effects?

Which of the following studies showed positive shareholder wealth effects for sell-offs?

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Hedge Funds As Activist Investors

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers Acquisitions

Filters

Exam 11: Corporate Restructuring

Sell-offs of their parts supplier units enabled GM and Ford to successfully use sell-offs to avoid union compensated-related liabilities of those units.

Which of the following are examples of pension-related employee benefit plans?

Many studies covering a quarter of a century document the positive shareholder wealth effects of sell-offs.

Which of the following are common reasons cited for selling off prior acquisitions?

Answer: The sale of Miller by Altria accomplished what:

The sell-offs by Starwood following its acquisition of Taittinger were motivated by:

In a spin-off the entity being separated from the parent company often is assigned specific debt attributable to it as part of the sale process.

Kaplan and Weisbach found that diversifying deals were which of the following with respect to the likelihood of subsequent divestiture?

Boise Cascade abandoned its core business and focused on the business of Office Max, which it had previously acquired.

A defensive spin-off is where a target sells off a division to make the company less attractive to bidders.

In the United States, in order for a spin-off to be nontaxable, the following must be the case:

Asian spin-off volume:

Answer: Research, such as research by Skantz and Marchesini, as well as that of Hite, Owers, and Rogers found that unlike divestitures, announcements of voluntary liquidations were not associated with positive shareholder wealth effects.

If a public company issues stock in its own subsidiary, these shares do not have to be registered by the SEC in order to be publicly traded as the parent company's shares are already registered.

The trend in European sell-offs is opposite that of the United States.

The following describes reverse synergy:

First Data shareholders were able to realize increased value when Western Union was spun off.

The trend in the number of divestitures and sell-offs tends to be opposite that of M&As and the movement in the economy in general.

Involuntary divestitures generally have what effects?

Which of the following studies showed positive shareholder wealth effects for sell-offs?

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Hedge Funds As Activist Investors

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers Acquisitions

Filters