Private Acquisitions

As finance emerged as a new field, much emphasis was placed on mergers and acquisitions. Answer: TRUE Difficulty: 1 Easy Topic: Introduction to corporate finance Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a number of other areas. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) Inflation is assumed to be a temporary problem that does not affect financial decisions. Answer: FALSE Difficulty: 1 Ea...

Corporate Level Strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. (Helps companies to select new strategic positions that are expected to increase the firm's value.) Single-business diversification strategy corporate level strategy wherein the firm generates 95% or more of its sales revenue from its core business area. Dominant-business diversification strategy...

What does "hold(ing) period" mean in private equity? : Period of time that it takes a private equity firm to acquire a company using cash raised from private investors Period of time that a private equity firm holds on to LP assets before returning capital to investors Period of time that a private equity firm owns shares in a publicly-traded company before taking it private Period of time that a private equity firm owns an asset before selling it Period of time that a private equ...

TEST BANK for Canadian Income Taxation Planning and Decision Making, 25th Edition by William Buckwold, Joan Kitunen, Matthew Roman, Abraham IqbaL: TABLE OF CONTENTS Part 1 A Planning and Decision-Making Approach to Taxation Chapter 1 Taxation—Its Role in Decision Making Chapter 2 Fundamentals of Tax Planning Part 2 An Overview of Income Determination and Tax for the Two Primary Entities Chapter 3 Liability for Tax, Income Determination, and Administration of the Income Tax System Chapter 4 Inc...

Tell me about yourself 1) I’ve always been a team player. - Growing up, I dreamed of playing professional baseball. - I dedicated my life to it. - I received some division 1 offers to play centerfield. - Unfortunately, during Junior summer, I tore tendons in my left wrist, so the baseball dream was over. 2) When I got to Northwestern, I kept an open mind. - Freshman year, I joined the Investment Management Club, where I learned about hedge fund and asset management investing...

WGU C201 Business Acumen Study GuideWhat are the two types of divestitures? - correct answer A sell-off is a divestiture in which assets are sold to another company. In a spin-off, a new company is created from the assets divested. Shareholders of the divesting company become shareholders of the new company as well. What is an LBO? - correct answer a leveraged buyout is a transaction in which public shareholders are bought out, and the company reverts to private status. LBOs are usually f...

Which one of the following statements is true regarding the policies for the use of simplified acquisition procedures (SAP)? Not - Purchases shall be made in the simplified manner that is most suitable to the circumstances of the acquisition. Not - The use of SAP is authorized for all commercial acquisitions 22. Not - The purpose of SAP is to improve opportunities for small businesses to obtain a fair portion of Government contracts Not - Agencies may separate requirements into smaller...

WGU C201 Business Acumen Study Guide Question and answers correctly solved 2024 What are the two types of divestitures? - correct answer A sell-off is a divestiture in which assets are sold to another company. In a spin-off, a new company is created from the assets divested. Shareholders of the divesting company become shareholders of the new company as well. What is an LBO? - correct answer a leveraged buyout is a transaction in which public shareholders are bought out, and the company r...

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way and it's best to say that it's more variable than ot...

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Public Comps and Precedent Transactions are examples of relative valuations and DCF is an example of Intrinsic Valuation Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-There is no ranking that will always hold. In general, precedent transactions will be higher than comparable companies due to the control premium built int...