1) The company that seeks to acquire another is called the _______________. A __
ID: 2727095 • Letter: 1
Question
1) The company that seeks to acquire another is called the _______________. A ____________ _______________ is the firm that another company seeks to acquire.
2) A merger of two or more firms in the same type of general industry, but no customer or supplier relationship exist is called a? A. vertical merger B. conglomerate merger C. congeneric merger D. horizontal merger
3) A merger of two or more firms that produce the same type of good or service is called a? A. vertical merger B. conglomerate merger C. congeneric merger D. horizontal merger
4) A merger or firms in a variety of different industries is called? A. vertical merger B. conglomerate merger C. congeneric merger D. horizontal merger
5) When contemplating a merger, the acquiring firm should determine the value of the target firm by using which of the following items. A. cost of capital or discount rate B. pro-forma income statement C. cost of equity D. a & b E. b & c
6) A merger of a firm and one of its suppliers is called a A. vertical merger B. conglomerate merger C. congeneric merger D. horizontal merger
7) Companies can be financed with the following? A. common stock B. Debt C. preferred stock D. all of the above E. none of the above
8) The three methods to rank investment proposals and which help you decide if these projects should run are called? _______________, ________________ &_______________.
9) The process of planning expenditures on assets whose cash flows are expected to extend beyond one year is called? A. project classifications B. weighted average cost of capital C. capital budgeting D. none of the above
10) The discount rate or cost of capital which the IRR must exceed if a project is to be accepted is called the _______________ ___________________.
Explanation / Answer
Solution 1:
A company that seeks of acquire another company is known as purchaser or raider or acquirer. The company, which other firms are thinking to acquire is known as Target Company.
Both Target Company and acquirer are standard jargons used in corporate merger and acquisition. This is process business restructuring.
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