FIN 461 EXAM 1 MIAMI
UNIVERSITY
(BOULTON)
QUESTIONS WITH
100% VERIFIED
ANSWERS!!
Evatee 10/20/24 FIN 461
, FIN 461 EXAM 1 MIAMI UNIVERSITY
(BOULTON) QUESTIONS WITH 100% VERIFIED
ANSWERS!!
Why does M&A tend to occur in waves? Answer - (1) Strong correlation
between S&P performance and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when their stock price
is high.
4 Factors that contribute to M&A waves Answer - (1) Liquidity; most recent
factor in M&A wave
(2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices
Motives for why firms engage in M&A transactions Answer - (1) Synergies
(2) Diversification
Horizontal Integration Answer - driven by economies of scale & scope
Vertical Integration Answer - motive is greater control over production and
distribution
Backward Integration (Vertical Integration) Answer - upstream; raw material
supplies, manufacturing/production
UNIVERSITY
(BOULTON)
QUESTIONS WITH
100% VERIFIED
ANSWERS!!
Evatee 10/20/24 FIN 461
, FIN 461 EXAM 1 MIAMI UNIVERSITY
(BOULTON) QUESTIONS WITH 100% VERIFIED
ANSWERS!!
Why does M&A tend to occur in waves? Answer - (1) Strong correlation
between S&P performance and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when their stock price
is high.
4 Factors that contribute to M&A waves Answer - (1) Liquidity; most recent
factor in M&A wave
(2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices
Motives for why firms engage in M&A transactions Answer - (1) Synergies
(2) Diversification
Horizontal Integration Answer - driven by economies of scale & scope
Vertical Integration Answer - motive is greater control over production and
distribution
Backward Integration (Vertical Integration) Answer - upstream; raw material
supplies, manufacturing/production
