During periods of high inflation, the market value of assets is often less than their book value.
This often creates an attractive M&A opportunity. True or
Multiple Choice: Circle only one of the alternatives.
(Total 15 points, each question 1 point)
Which of the following are not true about economies of scale?
Which of the following is not true of unrelated diversification?
Which of the following is not true of strategic realignment?
The hubris motive for M&As refers to which of the following?
Explains why mergers may happen even if the current market value of the target
firm reflects its true economic value
The ratio of the market value of the acquiring firm’s stock exceeds the replacement cost
of its assets
The Q ratio
The control model of corporate governance is applicable under all of the following conditions