M&A EXAM 2 QUESTIONS WITH 100%
CORRECT ANS!!
1 of 24
Term
All of the following assets can be amortized except:
Copyrights
Patents
Goodwill
PP&E
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b) EV
, c) Valuation methods may vary
by sector
d) PP&E c) ROIC
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2 of 24
Term
In a DCF analysis, the targets projected FCF and terminal value are
discounted to the present and summed to calculate the targets:
a) Enterprise Value
b) Market Cap
c) Equity Value
d) Current value
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c) Enterprise value less
assumed and/or refinanced d) Schedule 14D-9
net debt
a) Enterprise value a) They represent actual cash flows
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3 of 24
Term
, What situation would generally result in a lower purchase price of a
company?
a)The seller is in need of cash and is selling a non-core business
b)The target company is shopped to prospective buyers through an
auction
c) The target company is seeking alternatives to a hostile bid
d) The buyer seeks to create synergies
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d) Transactions comps are a)The is in need of cash and
more accurate than trading is selling a non-core
comps business
c) Enterprise value less assumed c) The acquirer purchases less
and/or refinanced net debt than 100% of outstanding shares
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4 of 24
Term
Which of the following is likely to be a non-recurring item on an
income statement?
a) SG&A expense
b) Interest expense
c) Depreciation
d) Goodwill Impairment
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CORRECT ANS!!
1 of 24
Term
All of the following assets can be amortized except:
Copyrights
Patents
Goodwill
PP&E
Give this one a try later!
b) EV
, c) Valuation methods may vary
by sector
d) PP&E c) ROIC
Don't know?
2 of 24
Term
In a DCF analysis, the targets projected FCF and terminal value are
discounted to the present and summed to calculate the targets:
a) Enterprise Value
b) Market Cap
c) Equity Value
d) Current value
Give this one a try later!
c) Enterprise value less
assumed and/or refinanced d) Schedule 14D-9
net debt
a) Enterprise value a) They represent actual cash flows
Don't know?
3 of 24
Term
, What situation would generally result in a lower purchase price of a
company?
a)The seller is in need of cash and is selling a non-core business
b)The target company is shopped to prospective buyers through an
auction
c) The target company is seeking alternatives to a hostile bid
d) The buyer seeks to create synergies
Give this one a try later!
d) Transactions comps are a)The is in need of cash and
more accurate than trading is selling a non-core
comps business
c) Enterprise value less assumed c) The acquirer purchases less
and/or refinanced net debt than 100% of outstanding shares
Don't know?
4 of 24
Term
Which of the following is likely to be a non-recurring item on an
income statement?
a) SG&A expense
b) Interest expense
c) Depreciation
d) Goodwill Impairment
Give this one a try later!
