Question 1

Which of the following is a potent defense against activist hedge funds?

Accepted Answer

A) Poison pills 
B) Staggered boards 
C) Improved financial performance 
D) All of the above 
E) None of the above 
A) Poison pills 
B) Staggered boards 
C) Improved financial performance 
D) All of the above 
E) None of the above C

Question 2

Which of the following are examples of factors that facilitated the growth of activist hedge funds over the years 2012-2015?

Accepted Answer

A) Rising stock market 
B) High cash balances of U.S.companies 
C) Growth of the U.S.economy 
D) All of the above 
A) Rising stock market 
B) High cash balances of U.S.companies 
C) Growth of the U.S.economy 
D) All of the above D

Question 3

Research, such as the work of Huang, found that companies which had activists in their shareholder base tended to receive higher takeover premiums when they are sold.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is not an example of an activist hedge funds?

Accepted Answer

A) Carl Icahn Enterprises 
B) Relational Investors 
C) Goldman Sachs 
D) Jana 
A) Carl Icahn Enterprises 
B) Relational Investors 
C) Goldman Sachs 
D) Jana

Question 5

Research, such as the work of Greenwood and Schoar, found that financial performance of companies improve after activists establish stock positions in the firms.

Accepted Answer

A) True 
 B)False

Question 6

There is research which supports the view that Investments in activist funds tend to outperform nonactivist hedge fund investments.

Accepted Answer

A) True 
 B)False

Question 7

Activists acquire stock positions with intent to make changes in the company which will increase the stock price and give them a profit.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following may be a valid criticism of activist hedge funds?

Accepted Answer

A) May cause target firms to be too short-term oriented 
B) Tend to reduce target financial performance 
C) Often fail to yield positive returns for investors 
D) All of the above 
E) None of the above 
A) May cause target firms to be too short-term oriented 
B) Tend to reduce target financial performance 
C) Often fail to yield positive returns for investors 
D) All of the above 
E) None of the above

Question 9

Research, such as the work of Clifford, has established that when activists establish share position in target shareholder wealth declines.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true?

Accepted Answer

A) Hedge funds tend to facilitate more M&As 
B) Hedge funds tend to have a dampening effect on M&As 
C) Hedge funds are neutral as it relates to M&A activity 
D) None of the above 
A) Hedge funds tend to facilitate more M&As 
B) Hedge funds tend to have a dampening effect on M&As 
C) Hedge funds are neutral as it relates to M&A activity 
D) None of the above

Which of the following is a potent defense against activist hedge funds?

Which of the following are examples of factors that facilitated the growth of activist hedge funds over the years 2012-2015?

Research, such as the work of Huang, found that companies which had activists in their shareholder base tended to receive higher takeover premiums when they are sold.

Which of the following is not an example of an activist hedge funds?

Research, such as the work of Greenwood and Schoar, found that financial performance of companies improve after activists establish stock positions in the firms.

There is research which supports the view that Investments in activist funds tend to outperform nonactivist hedge fund investments.

Activists acquire stock positions with intent to make changes in the company which will increase the stock price and give them a profit.

Which of the following may be a valid criticism of activist hedge funds?

Research, such as the work of Clifford, has established that when activists establish share position in target shareholder wealth declines.

Which of the following is true?

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers & Acquisitions

Filters

Exam 7: Hedge Funds As Activist Investors

Which of the following is a potent defense against activist hedge funds?

Which of the following are examples of factors that facilitated the growth of activist hedge funds over the years 2012-2015?

Research, such as the work of Huang, found that companies which had activists in their shareholder base tended to receive higher takeover premiums when they are sold.

Which of the following is not an example of an activist hedge funds?

Research, such as the work of Greenwood and Schoar, found that financial performance of companies improve after activists establish stock positions in the firms.

There is research which supports the view that Investments in activist funds tend to outperform nonactivist hedge fund investments.

Activists acquire stock positions with intent to make changes in the company which will increase the stock price and give them a profit.

Which of the following may be a valid criticism of activist hedge funds?

Research, such as the work of Clifford, has established that when activists establish share position in target shareholder wealth declines.

Which of the following is true?

Introduction

History of Mergers

Legal Framework

Merger Strategy

Antitakeover Measures

Takeover Tactics

Going-Private Transactions and Leveraged Buyouts

The Private Equity Market

The Junk Bond and the Leveraged Loan Market and Stapled Financing

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers & Acquisitions

Filters