34. typically the minimal value the target firm is willing to accept is the: a.

Question

34. typically the minimal value the target firm is willing to accept is the: a. liquidation value b. book value c. earning valuation d. none of the above

35. sales less cost of goods sold yields: a. operating income b. EBIT c. gross margin d.none of the above

36. flexibility issues are those which: a. deal with a companies financing reserves b. impacts the debt capacity that a firm should maintain d. all of the above

37. alice corp. acquires blue corp. because blue corp. has unused production facilities that alice needs, this is an example of : a. diversification b. vertical integration c. horizontal integration d. none of the above

Explanation / Answer

34. Liquidation value is the minimal value the target firm is willing to accept. All other values are generally higher than minimal value. Hence, option A is correct.

35. Gross margin is the difference between sales and cost of goods sold. Hence, option C is correct.

36. Flexibility issues impacts the debt capacity of a firm. Hence option B is correct.

37. None of them is true. Option D is correct.

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