FIN 461 Exam 1 Miami University Questions with
complete solution 2025/2026
1. Why does M&A tend
(1) Cyclical patterns with strong correlation between S&P
to occur in waves?
performance and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when
their stock price is high.
2. 4 Factors that
contribute to M&A (1) Liquidity; most recent factor in M&A wave
waves (2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices, recent trends with SPACs/ESG
3. Motives for why (1) Synergies
firms engage in M&A (2) Diversification
transac- tions
4. Main M&A players 1. Identify strategic alternatives
and their roles 2. Value maximization, 3.speed of execution
4. Certainty of completion
5. Horizontal Integration driven by economies of scale & scope
6. Vertical Integration motive is greater control over production and distribution
7. Backward upstream; raw material supplies, manufacturing/production
Integration
(Vertical
Integration) downstream; distribution, end user
8. Forward
Integration
(Vertical
Integration)
9. Conglomeration driven by desire to diversify
,10. Who wins in an the target firm (targets shareholders make better returns)
M&A transaction?
11.
, FIN 461 Exam 1 Miami University
Study online at https://quizlet.com/_cvpeu1
Who loses in an the acquiring firm; returns are negative however, positive
M&A transaction? returns for acquirer are situational and include the target, size,
and consideration
12. What factors DO
matter in creating
(1) Financing structure
value for the
(2) Target company status
acquirer?
(3) Earnings growth
(4) Foreign vs domestic acquisitions
13. What factors DO
(1) EPS impact
NOT matter in
creating value for the (2) Transaction size
acquirer? (3) Profitability & volatility
(4) Credit rating impact
(5) Industry
14. The functions performed (1) M&A advisory
by investment banks (2) Underwriting
(3) Sales & Trading
(4) Research
(5) Syndicate
15. How do investment ditterent fees for advising and providing fairness opinion
banks get paid for
their work?
16. The role played by
(1) Identify strategic alternatives
in- vestment banks
(2) Value maximization
in M&A transactions
(3) Speed of execution
(4) Certainty of completion
17. League tables list of investment banks that ranks them in terms of fees
generated.
Tracks activities of investment banks like M&A deals and valuation
complete solution 2025/2026
1. Why does M&A tend
(1) Cyclical patterns with strong correlation between S&P
to occur in waves?
performance and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when
their stock price is high.
2. 4 Factors that
contribute to M&A (1) Liquidity; most recent factor in M&A wave
waves (2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices, recent trends with SPACs/ESG
3. Motives for why (1) Synergies
firms engage in M&A (2) Diversification
transac- tions
4. Main M&A players 1. Identify strategic alternatives
and their roles 2. Value maximization, 3.speed of execution
4. Certainty of completion
5. Horizontal Integration driven by economies of scale & scope
6. Vertical Integration motive is greater control over production and distribution
7. Backward upstream; raw material supplies, manufacturing/production
Integration
(Vertical
Integration) downstream; distribution, end user
8. Forward
Integration
(Vertical
Integration)
9. Conglomeration driven by desire to diversify
,10. Who wins in an the target firm (targets shareholders make better returns)
M&A transaction?
11.
, FIN 461 Exam 1 Miami University
Study online at https://quizlet.com/_cvpeu1
Who loses in an the acquiring firm; returns are negative however, positive
M&A transaction? returns for acquirer are situational and include the target, size,
and consideration
12. What factors DO
matter in creating
(1) Financing structure
value for the
(2) Target company status
acquirer?
(3) Earnings growth
(4) Foreign vs domestic acquisitions
13. What factors DO
(1) EPS impact
NOT matter in
creating value for the (2) Transaction size
acquirer? (3) Profitability & volatility
(4) Credit rating impact
(5) Industry
14. The functions performed (1) M&A advisory
by investment banks (2) Underwriting
(3) Sales & Trading
(4) Research
(5) Syndicate
15. How do investment ditterent fees for advising and providing fairness opinion
banks get paid for
their work?
16. The role played by
(1) Identify strategic alternatives
in- vestment banks
(2) Value maximization
in M&A transactions
(3) Speed of execution
(4) Certainty of completion
17. League tables list of investment banks that ranks them in terms of fees
generated.
Tracks activities of investment banks like M&A deals and valuation
