Question 1

A reverse merger takes longer to complete than a typical merger.

Accepted Answer

A) True 
 B)False  False

Question 2

In a short-form merger:

Accepted Answer

A) Bidders only submit a two-page filing with the SEC 
B) Deals usually close within two weeks 
C) The standard stockholder approval process can be bypassed 
D) A 51% approval by shareholders is required 
A) Bidders only submit a two-page filing with the SEC 
B) Deals usually close within two weeks 
C) The standard stockholder approval process can be bypassed 
D) A 51% approval by shareholders is required C

Question 3

Contingent value rights may provide some guarantee if the acquirer's shares fall below some level.

Accepted Answer

A) True 
 B)False  True

Question 4

Targets can use an asset sell-off to avoid legitimate liabilities.

Accepted Answer

A) True 
 B)False

Question 5

In a freeze-out:

Accepted Answer

A) Minority shareholders cannot hold up a merger 
B) Certain members of management are prevented from entering company facilities 
C) Targets are prevented from receiving a takeover premium 
D) None of the above 
A) Minority shareholders cannot hold up a merger 
B) Certain members of management are prevented from entering company facilities 
C) Targets are prevented from receiving a takeover premium 
D) None of the above

Question 6

One of the advantages of an asset acquisition is that it may not be necessary to solicit approval from its own shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Chartejee and Yan's research has showed:

Accepted Answer

A) Mergers don't pay 
B) Contingent value rights are used when the parties have asymmetric information 
C) Conglomerate mergers are more likely to yield negative returns 
A) Mergers don't pay 
B) Contingent value rights are used when the parties have asymmetric information 
C) Conglomerate mergers are more likely to yield negative returns

Question 8

Private equity firms are frequent LBO dealmakers.

Accepted Answer

A) True 
 B)False

Question 9

The merger between Exxon and Mobil is an example of:

Accepted Answer

A) Vertical merger 
B) Horizontal merger 
C) Conglomerate merger 
D) Reverse merger 
A) Vertical merger 
B) Horizontal merger 
C) Conglomerate merger 
D) Reverse merger

Question 10

Following Smith v.Van Gorkom:

Accepted Answer

A) Targets must immediately announce all overtures from potential bidders 
B) Directors are more likely to seek outside fairness opinions 
C) We have seen more use of debt financing 
D) None of the above 
A) Targets must immediately announce all overtures from potential bidders 
B) Directors are more likely to seek outside fairness opinions 
C) We have seen more use of debt financing 
D) None of the above

Question 11

In risk arbitrage the following is true:

Accepted Answer

A) Investors may expect the bidder's stock price to fall 
B) Investors may expect the target's stock price to rise 
C) Both a and b 
D) Neither a and b 
A) Investors may expect the bidder's stock price to fall 
B) Investors may expect the target's stock price to rise 
C) Both a and b 
D) Neither a and b

Question 12

Pursuant to Basic v Levinson:

Accepted Answer

A) Targets must immediately announce all overtures from potential bidders 
B) Bidders must announce all overtures to targets 
C) Targets may not release false information on deal progress 
D) None of the above 
A) Targets must immediately announce all overtures from potential bidders 
B) Bidders must announce all overtures to targets 
C) Targets may not release false information on deal progress 
D) None of the above

Question 13

A letter of intent:

Accepted Answer

A) Is legally required in all U.S.deals 
B) Sets for more detailed terms than a term sheet 
C) Is more common in closely held acquisitions 
D) None of the above 
A) Is legally required in all U.S.deals 
B) Sets for more detailed terms than a term sheet 
C) Is more common in closely held acquisitions 
D) None of the above

Question 14

LBOs are:

Accepted Answer

A) Also called going-private transactions 
B) Financed primarily with debt 
C) Have not been that common since the 1980s 
D) All of the above 
E) Both a and b
F)Both b and c 
A) Also called going-private transactions 
B) Financed primarily with debt 
C) Have not been that common since the 1980s 
D) All of the above 
E) Both a and b
F)Both b and c

Question 15

SPACs have not been popular since the 1990s.

Accepted Answer

A) True 
 B)False

Question 16

In a de facto merger:

Accepted Answer

A) Bidders may be able to avoid all of the target's liabilities 
B) Bidders own at least 30% of the target's stock 
C) Only California law applies 
D) The bidder is considered to have acquired the target even if no formal acquisition took place
True or False 
A) Bidders may be able to avoid all of the target's liabilities 
B) Bidders own at least 30% of the target's stock 
C) Only California law applies 
D) The bidder is considered to have acquired the target even if no formal acquisition took place
True or False

Question 17

With an SPAC bidding shareholders are quite familiar with the target to be acquired when they purchase the SPAC's shares in its IPO.

Accepted Answer

A) True 
 B)False

Question 18

Bidders use merger arbitrage as a way of lowering their takeover costs.

Accepted Answer

A) True 
 B)False

Question 19

When a company sells off all of its assets, it falls under the regulation of the Investment Company Act of 1940.

Accepted Answer

A) True 
 B)False

Question 20

Under a typical Lehman formula dealmakers may earn 5% of the first $1 million of the takeover price.

Accepted Answer

A) True 
 B)False

A reverse merger takes longer to complete than a typical merger.

In a short-form merger:

Contingent value rights may provide some guarantee if the acquirer's shares fall below some level.

Targets can use an asset sell-off to avoid legitimate liabilities.

In a freeze-out:

One of the advantages of an asset acquisition is that it may not be necessary to solicit approval from its own shareholders.

Chartejee and Yan's research has showed:

Private equity firms are frequent LBO dealmakers.

The merger between Exxon and Mobil is an example of:

Following Smith v.Van Gorkom:

In risk arbitrage the following is true:

Pursuant to Basic v Levinson:

A letter of intent:

LBOs are:

SPACs have not been popular since the 1990s.

In a de facto merger:

With an SPAC bidding shareholders are quite familiar with the target to be acquired when they purchase the SPAC's shares in its IPO.

Bidders use merger arbitrage as a way of lowering their takeover costs.

When a company sells off all of its assets, it falls under the regulation of the Investment Company Act of 1940.

Under a typical Lehman formula dealmakers may earn 5% of the first $1 million of the takeover price.

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

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers & Acquisitions

Filters

Exam 1: Introduction

A reverse merger takes longer to complete than a typical merger.

In a short-form merger:

Contingent value rights may provide some guarantee if the acquirer's shares fall below some level.

Targets can use an asset sell-off to avoid legitimate liabilities.

In a freeze-out:

One of the advantages of an asset acquisition is that it may not be necessary to solicit approval from its own shareholders.

Chartejee and Yan's research has showed:

Private equity firms are frequent LBO dealmakers.

The merger between Exxon and Mobil is an example of:

Following Smith v.Van Gorkom:

In risk arbitrage the following is true:

Pursuant to Basic v Levinson:

A letter of intent:

LBOs are:

SPACs have not been popular since the 1990s.

In a de facto merger:

With an SPAC bidding shareholders are quite familiar with the target to be acquired when they purchase the SPAC's shares in its IPO.

Bidders use merger arbitrage as a way of lowering their takeover costs.

When a company sells off all of its assets, it falls under the regulation of the Investment Company Act of 1940.

Under a typical Lehman formula dealmakers may earn 5% of the first $1 million of the takeover price.

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

Corporate Restructuring

Restructuring in Bankruptcy

Corporate Governance

Joint Ventures and Strategic Alliances

Valuation

Tax Issues in Mergers & Acquisitions

Filters