Mergers, Acquistion and Corporate Restructuring

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I have 43 questions. Help? Document Preview: FIN/444 Mergers, Acquisition and Corporate Restructuring 1. The pooling of interest and the purchase method are the two methods allowed by the FASB in accounting for Mergers and Acquisitions. True False 2. FASB prefers the purchase method of accounting for business combinations because CEO’s of major corporations find it more beneficial Purchase method allows for amortization of goodwill over a maximum of 40 years Merger accounting and subsequent asset values should be consistent with market valuations Purchase method is more easily understood by accountants 3. Strategic planning is the responsibility of the CEO and executive management team? True False 4. Which of the statements below is an essential element of the strategic planning process Formulation of internal organizational performance measurements. Formulation of mid-range programs and short-run plans. Analysis of company, competitors, industry, domestic economy, and international economies. A and C only All of the above 5. Strategic planning processes can utilize formal procedures or develop through informal communications throughout the organization. True False 6. According to the study done by Jensen (1986) he found that Firms with substantially high free cash flow leads to value-reducing diversification decisions Mergers create cost saving synergies Produce economies of scale B and C only 7. According to studies done by Hirshleifer and Png (1989) and French and McCormick (1984) suggested that a seller might want to limit the competitiveness of the selling process because it can indirectly affect the aggressiveness of any one bidder and adversely affect the combined net gains from the transaction. A seller might want to promote the competitiveness of the selling process because it can indirectly affect the aggressiveness of any one bidder and help increase the combined net gains from the transaction Bidders in a takeover attempt... Attachments: Questions-1-4....doc May 15 2014 08:18 PM

 

Solution ID:608882 | This paper was updated on 26-Nov-2015

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