M&A EXAM REVIEW QUESTIONS AND
CORRECT ANSWERS.
The merger between Exxon and Mobil is an example of:
- Vertical merger
- Horizontal merger
- Conglomerate merger
- Reverse merger
Horizontal merger
In risk arbitrage the following is true:
- a) Investors may expect the bidder´s stock price to fall
- b) Investors may expect the target´s stock price to rise
- both a) and b)
- neither a) and b)
a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may expect the target's stock price to rise
LBOs are:
- a) also called private-going transactions
- b) Financed primarily with debt
- c) have not been that common since the 1980s
- all of the aboce
- both a) and b)
- both b) and c)
a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent:
- is legally required in all U.S deals
,- Sets for more detailed terms than a term sheet
- Is more common in closely held acquisitions
- None of the above
Sets for more detailed terms than a term sheet
In a freeze-out:
- Minority shareholders cannot hold up a merger
- Certain members of management are prevented from entering company facilities
- Targets are prevented from receiving
- None of the above
Minority shareholders cannot hold up a merger
Private equity firms are
frequent LBO dealmakers
- true or false
True
Bidders use merger arbitrage as a way of lowering their takeover costs
- true or false
False
Research has shown that the following factors contribute to the origination of merger
waves:
- a) Economic shocks
- b) regulatory shocks
- c) Technological shocks
- a, b, c
- both b and c
a, b, and c
a) Economic shocks
b) regulatory shocks
c) Technological shocks
, Which of the following companies can trace their origins to the first merger wave?
- General electric
- DuPont
- a) and b)
a and b
Which of the following types of deals were common in the third merger wave?
- horizontal
- vertical
- conglomerate
- none of the above
- a, b and c
conglomerate
Which of the following factors contributed to the end of the third merger wave?
- a) stock market downturn
- b) economic slowdown
- c) antitrust enforcement
- none of the above
- all of the above
all of the above
- a) stock market downturn
- b) economic slowdown
- c) antitrust enforcement
Which of the following merger waves were truly global:
1.,2.,3.,5.
Fifth
Which of the following factors contributed to the end of the 5th merger wave?
- a) Stockmarket downturn
- b) Economic slowdown
CORRECT ANSWERS.
The merger between Exxon and Mobil is an example of:
- Vertical merger
- Horizontal merger
- Conglomerate merger
- Reverse merger
Horizontal merger
In risk arbitrage the following is true:
- a) Investors may expect the bidder´s stock price to fall
- b) Investors may expect the target´s stock price to rise
- both a) and b)
- neither a) and b)
a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may expect the target's stock price to rise
LBOs are:
- a) also called private-going transactions
- b) Financed primarily with debt
- c) have not been that common since the 1980s
- all of the aboce
- both a) and b)
- both b) and c)
a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent:
- is legally required in all U.S deals
,- Sets for more detailed terms than a term sheet
- Is more common in closely held acquisitions
- None of the above
Sets for more detailed terms than a term sheet
In a freeze-out:
- Minority shareholders cannot hold up a merger
- Certain members of management are prevented from entering company facilities
- Targets are prevented from receiving
- None of the above
Minority shareholders cannot hold up a merger
Private equity firms are
frequent LBO dealmakers
- true or false
True
Bidders use merger arbitrage as a way of lowering their takeover costs
- true or false
False
Research has shown that the following factors contribute to the origination of merger
waves:
- a) Economic shocks
- b) regulatory shocks
- c) Technological shocks
- a, b, c
- both b and c
a, b, and c
a) Economic shocks
b) regulatory shocks
c) Technological shocks
, Which of the following companies can trace their origins to the first merger wave?
- General electric
- DuPont
- a) and b)
a and b
Which of the following types of deals were common in the third merger wave?
- horizontal
- vertical
- conglomerate
- none of the above
- a, b and c
conglomerate
Which of the following factors contributed to the end of the third merger wave?
- a) stock market downturn
- b) economic slowdown
- c) antitrust enforcement
- none of the above
- all of the above
all of the above
- a) stock market downturn
- b) economic slowdown
- c) antitrust enforcement
Which of the following merger waves were truly global:
1.,2.,3.,5.
Fifth
Which of the following factors contributed to the end of the 5th merger wave?
- a) Stockmarket downturn
- b) Economic slowdown
