Brealey. Myers. Allen Chapter 32 Test

Brealey. Myers. Allen Chapter 32 Test - Chapter 32 Mergers...

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Brealey/Myers/Allen, Principles of Corporate Finance, 8/e 1 Chapter 32 Mergers Multiple Choice Questions 1. Market for corporate control includes the following: (I) Mergers (II) Spin-offs and divestitures (III) Leveraged buyouts (LBOs) (IV) Privatizations A) I only B) I and II only C) I, II, and III only D) I, II,III, and IV Answer: D Type: Medium Page: 871 2. The merger of J.P. Morgan and Bank One is an example of: (I) Cross-border merger (II) Horizontal merger (III) Conglomerate merger (IV) Vertical merger A) I only B) II only C) III only D) I and III only Answer: B Type: Easy Page: 871 3. Pfizer's acquisition of Pharmacia is an example of: (I) Horizontal merger (II) Vertical merger (III) Conglomerate merger A) I only B) II only C) III only D) None of the given ones Answer: A Type: Easy Page: 871
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Test Bank, Chapter 32 2 4. AOL's (America Online) acquisition of Time Warner is an example of: (I) Cross-border merger (II) Horizontal merger (III) Conglomerate merger (IV) Vertical merger A) I and II only B) I and III only C) III only D) IV only Answer: D Type: Easy Page: 871 5. Daimler-Benz's acquisition of Chrysler is an example of: (I) Horizontal merger (II) Conglomerate merger (III) Cross-border merger (IV) Vertical merger A) I only B) II only C) I and III only D) IV only Answer: C Type: Easy Page: 871 6. Walt Disney's acquisition of ABC television network is an example of: (I) Horizontal merger (II) Vertical merger (III) Conglomerate merger (IV) Cross-border merger A) I only B) II only C) III only D) I and IV only Answer: B Type: Easy Page: 871 7. The BP and Amoco merger is an example of: (I) Cross-border merger (II) Horizontal merger (III) Economies of scale A) I only B) I and II only C) I, II, and III only D) III only Answer: C Type: Medium Page: 871
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3 8. AT&T's acquisition of TCI is an example of: (I) Horizontal merger (II) Vertical merger (III) Conglomerate merger (IV) Cross-border merger A) I only B) II only C) III only D) III and IV only Answer: B Type: Easy Page: 871 9. The following reasons are good motives for mergers except: (I) Economies of scale (II) Complementary resources (III) Diversification (IV) Eliminating Inefficiencies A) I only B) II only C) III only D) I, II, and IV only Answer: C Type: Medium Page: 873 10. The following are good reasons for mergers: (I) Surplus funds (II) Eliminating inefficiencies (III) Complementary resources (IV) Increasing earnings per share (EPS) A) I only B) I and II only C) I, II, and III only D) IV only Answer: C Type: Medium Page: 873 11. The following are good reasons for mergers: (I) Economies of scale (II) Economics of vertical integration (III) Complementary resources (IV) Surplus funds (V) Eliminating inefficiencies (VI) Industry consolidation A) I only B) I, II, and III only C) I, III, IV, and V only D) I, II, III, IV, V, and VI Answer: D
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This note was uploaded on 04/18/2010 for the course FINANCE 936116531 taught by Professor Wuyiling during the Spring '10 term at Nashville State Community College.

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Brealey. Myers. Allen Chapter 32 Test - Chapter 32 Mergers...

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