1.When determining value for a company based on transaction rather than trading comps, one of the key differences that will affect the value is?

a.Lack of a comparable universe

b.Premium paid for control of the business

c.Unavailable historical information

d.Target was never public

2.

Garths Micro Brewery, whose shares are currently trading at $40 per share, is considering acquiring Waynes Beer Bottling Co. You have compiled a group of comparable transactions within the beer bottling space and have calculated that since 2014, acquisitions similar (or comparable!) to the one Garths is currently considering have had transaction values (offer value of target plus any target debt, net of cash) that are, on average, 8.0x targets EBITDA.

Waynes shares currently trade at $34 per share

Waynes has 50 million diluted shares outstanding

Waynes LTM EBITDA was $250 million

Waynes Net Debt was $200 million

What is the offer value per share and the offer premium?a.$32.33 per share; -4.9% b.$36.00 per share; 5.9% c.$44.00 per share; 29.4% d.

$52.94 per share; 55.7%

3.When looking to do a transaction comp analysis, some of the merger-related filings that should be looked at include each of the following EXCEPT:

a.8-K b.Form S-1 c.Proxy statement d.Form S-4

4.Company A shares are currently trading at $20 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2014 are $1.50 per share. Company A has 200 million diluted shares outstanding. Company As major competitors are trading at an average share price / 2014 Expected EPS of 15.0x.

Using the comparable company analysis valuation method, Company A shares are:

d.Appropriately priced

a.$2.50 per share overvalued

b.$2.50 per share undervalued

c.Need more information

5.An equity holder would be primarily concerned with which of the following multiples?

I. Enterprise (Transaction) Value / EBITDA II. Price/Earnings III. Enterprise (Transaction) Value / Sales

a.I and II only

b.II only

c.I and III only

d.I, II, and III

6.Company A shares are currently trading at $50 per share. A survey of Wall Street analysts reveals that EPS expectations for Company A for the full year 2014 are $2.50 per share. Company A has 300 million diluted shares outstanding. Company As major competitors are trading at an average share price / 2014 Expected EPS of 23.0x.

Using the comparable company analysis valuation method, Company A shares are:

a.Appropriately priced

b.$7.50 per share undervalued

c.$7.50 per share overvalued

d.Need more information