SampleMT1 - Part A (50 points). Part A.1 - True / False 1....

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Part A  (50 points). Part A.1  - True / False 1.T/F Takeover activity is a constant percentage of the total economy, with few fluctuations.   2.T/F The pooling method of accounting is no longer allowed in Canada. 3.T/F Under pooling, net income is usually higher than under the purchase method. 4.T/F Event studies based on a stocks average returns are far inferior to the more sophisticated market model or market  adjusted return models.  5.T/F Event studies assume the strong-form of market efficiency. 6.T/F Comparables are a good place to start in valuation, but rarely sufficient for developing a bid. 7.T/F The formula method in valuation yields results strikingly different from the spreadsheet method. 8.T/F In the US, a bidder must disclose intent within 2 days of acquiring 10% of a company's stock. 9.T/F In the US, shareholders must be given at least 20 days to evaluate any tender offer, even if there is an offer on the  table. 10. T/F According to the text, 2/3 of shareholders must agree to a tender offer. 11. T/F The problem with monopolists is that they charge too much. Part A.2
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This note was uploaded on 04/02/2009 for the course DEPARTMENT FIN 4320 taught by Professor Sherwoodbishop during the Spring '08 term at Southwestern.

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SampleMT1 - Part A (50 points). Part A.1 - True / False 1....

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