1.Synergy values are the additional values that companies realize through a merger and acquisition. Synergy values can take three forms. Generally speaking, the most significant and common form of synergy is:

Select one:

a. Lower expenses and cost

b. Longer growth period

c.Higher growth rate

d. Higher Cost of Capital

2.APV equals the sum of the base-case NPV(financed solely by equity) and_________________

Select one:

a. PV of interest

b. PV of interest tax shield

c. NPV of taxes

d. PV of taxes and interest

3.A reason for acquisitions is synergy. Synergy includes:

Select one:

a. Revenue enhancements

b. Cost reductions

c.Lower taxes

d.All of the above

e. None of the above

5.Why aprofitable firm might consider acquiring a firm that has had large recent losses and will continue to have losses into the near future?

Select one:

a. Tax Benefits

b.reduce costs of good sold

c.Increase Assets

d. Increase growth

6.Competition among bidders pushes gains away from selling shareholders

Select one:

a. False

b. True