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1. Kind according to purpose (Choose 1)
a. Horizontal
b. Vertical
c. Product Extention
d. Market Extension
e. Congeneric
f. Conglomerate
2. Kind according to approach to the target firm (Choose 1)
a. Friendly
b. Hostile
3. Kind according to acquisition mode (Choose 1)
a. Cash
b. Equity swap
c. Mix of cash and equity swap
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- Define each of the following terms:a. Capital; capital structure; optimal capital structureb. Business risk; financial riskc. Financial leverage; operating leverage; operating breakevend. Hamada equation; unlevered betae. Symmetric information; asymmetric informationf. Modigliani-Miller theoriesg. Trade-off theory; signaling theoryh. Reserve borrowing capacity; pecking orderi. Windows of opportunity; net debtis to decide whether the firm should distribute all profits or retain them or distribute a portion and retain the balance O a. Investment Decision Ob. Financing Decision O c.Dividend Decision Od. Liquidity Decision.What are the payout methods? Select all that apply. Group of answer choices a. Bank loan b. Buyout c. SPAC d. Dividend
- Commodities of broker-traders are measured at * a. Fair value b. Fair value less cost of capital c. Cost d. NRVcreditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leveragePlease decsribe, explain and give examples to the following terms so I can understand well: 1. Par Value 2. Stated Value 3. Share Certificate
- Which are valid methods for finding the cost of equity? Check all that apply: 1. The dividend discount model approach 2. The perpetuity approach 3. The YTM approach 4. The CAPM or SML approachFinancial market facilities the price discovery of the trade financial assets. A. True B. FalseNPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share capital О с. Return on Capital Employed O d. Debt service ratio
- Which one of the following has the potential to allow for the greatest amount of off-balance-sheet financing for the investor? Group of answer choices Equity method Equity method with special purpose entities Mark-to-market accounting Consolidation accounting(D/D+E)kd(1-T) + (E/D+E)k2 is also known as Group of answer choices The required rate of equity return The required rate of debt cost The weighted average cost of capital The average cost of equityWhich of the following ratios is most useful in evaluating liquidity? ed d out of g ion • A. Return on assets. O B. Debt to equity ratio. C. Return on equity/capital O D. Current ratio.