M&A EXAM QUESTIONS AND CORRECT
ANSWERS.
The merger between Exxon and Mobil is an example of
Horizontal merger
In risk arbitrage the following is true:
a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may the target's stock price to rise
LBOs are
a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent
Sets for more detailed terming than a term sheet
In a freeze-out:
Minority shareholders cannot hold up a merger
With a SPAC, bidding shareholders are quite familiar with the target to be acquired when
they purchase the SPAC's shares in its IPO.
False
Private equity firms are frequent LBO dealmakers
True
Bidders use merger arbitrage as a way of lowering their takeover costs
False
, Research has shown that the following factors contribute to the origination of merger
waves
a, b, and c
a) Economic shocks
b) regulatory shocks
c) Technological shocks
Which of the following companies can trace their origins to the first merger wave?
a and b
Which of the following types of deals were common in the third merger?
conglomerate
Which of the following factors contributed to the end of the third merger wave?
a, b, and c
a) Antitrust enforcement
b) economic slowdown
c) stockmarket downturn
Which of the following merger waves were truly global
Fifth
Which of the following factors contributed to the end of the 5th merger wave?
a and b
a) Stockmarket downturn
b) Economic slowdown
Antitakeover defence became increasingly sophisticated the following merger waves:
Fourth
Investment bankers played a pivotal role in leading many of the deals that took place in the
fourth merger wave.
ANSWERS.
The merger between Exxon and Mobil is an example of
Horizontal merger
In risk arbitrage the following is true:
a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may the target's stock price to rise
LBOs are
a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent
Sets for more detailed terming than a term sheet
In a freeze-out:
Minority shareholders cannot hold up a merger
With a SPAC, bidding shareholders are quite familiar with the target to be acquired when
they purchase the SPAC's shares in its IPO.
False
Private equity firms are frequent LBO dealmakers
True
Bidders use merger arbitrage as a way of lowering their takeover costs
False
, Research has shown that the following factors contribute to the origination of merger
waves
a, b, and c
a) Economic shocks
b) regulatory shocks
c) Technological shocks
Which of the following companies can trace their origins to the first merger wave?
a and b
Which of the following types of deals were common in the third merger?
conglomerate
Which of the following factors contributed to the end of the third merger wave?
a, b, and c
a) Antitrust enforcement
b) economic slowdown
c) stockmarket downturn
Which of the following merger waves were truly global
Fifth
Which of the following factors contributed to the end of the 5th merger wave?
a and b
a) Stockmarket downturn
b) Economic slowdown
Antitakeover defence became increasingly sophisticated the following merger waves:
Fourth
Investment bankers played a pivotal role in leading many of the deals that took place in the
fourth merger wave.
