Question 1

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 C

Question 2

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 European and the United States 
D) None of the above 
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 European and the United States 
D) None of the above C

Question 3

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  False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 of 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 of the above 
E) Both a and b
F)Both a and c

Question 9

Kaplan and Weishbach 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

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 13

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 14

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 15

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 16

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

Question 17

Cash flow needs motivated the sell-off of Hertz by GM.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

The following describes reverse synergy:

Asian spin-off volume:

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.

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

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

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

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

The sale of Miller by Altria accomplished what:

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

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

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

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

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.

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

Involuntary divestitures generally have what effects?

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.

Cash flow needs motivated the sell-off of Hertz by GM.

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

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

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.

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

The following describes reverse synergy:

Asian spin-off volume:

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.

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

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

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

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

The sale of Miller by Altria accomplished what:

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

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

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

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

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.

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

Involuntary divestitures generally have what effects?

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.

Cash flow needs motivated the sell-off of Hertz by GM.

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

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

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.

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