Instructions: Please answer any five questions (select wisely based on your research). Think and organize your thoughts. Remember to provide exampler and references to updated research. 1. Discuss (with specific reasons) the effects of the following variables on M\&A activity: (E.g., Employment is positively related with M\&A activity; High employment usually means good economy implying high M\&A activity.) - GDP growth - Interest rate level/Interest rate risk premiums - Monetary stringency (tight money supply) - Deregulation 2. Is M\&A activity good (or bad) for consumers and commercial activity? Are the benefits evenly shared amongst the bidder, the target, and the combined firm? Please base your answer on updated empirical research in the literature. 3. How does the presence of single versus multiple bidders affect the returns to the target firm? How does the method of payment (cash versus stock) affect the retums to the target fimm? Summarize the empirical evidence about shareholder gains to bidders, targets, and combined firms. 4. Explain the four valuation techniques with their respective advantages and disadvantages. 5. What were the reasons for the increase in LBO activity during the 1980 s, their decline in 1989 , and resurgence in 1992? Explain in detail ALL stages of a successful LBO. 6. Why were LBOs able to use such high degree of leverage compared to other businesses? Discuss the advantages and disadvantages of LBO's. What are sources of gain from going private transactions? 7. Discuss the forces driving cross-border mergers. What do research studies say about the premiums paid and the event returns from international M\&A activities? What reasons are provided in the Jiterature behind such premiums? 8. What are the financial characteristics that make a firm vulnerable to a takeover? What defensive measures can ward off unsolicited and unwelcome bidders? What is the effect of such amendments on firm's stock price based on empirical evidence? 9. Explain the following commonly used M\&A terms: - Shark repellents - Pac man defense - White knight/White squire - Greenmail - Poison Pilis/Poise Instructions: Please answer any five questions (select wisely based on your research). Think and organize your thoughts. Remember to provide exampler and references to updated research. 1. Discuss (with specific reasons) the effects of the following variables on M\&A activity: (E.g., Employment is positively related with M\&A activity; High employment usually means good economy implying high M\&A activity.) - GDP growth - Interest rate level/Interest rate risk premiums - Monetary stringency (tight money supply) - Deregulation 2. Is M\&A activity good (or bad) for consumers and commercial activity? Are the benefits evenly shared amongst the bidder, the target, and the combined firm? Please base your answer on updated empirical research in the literature. 3. How does the presence of single versus multiple bidders affect the returns to the target firm? How does the method of payment (cash versus stock) affect the retums to the target fimm? Summarize the empirical evidence about shareholder gains to bidders, targets, and combined firms. 4. Explain the four valuation techniques with their respective advantages and disadvantages. 5. What were the reasons for the increase in LBO activity during the 1980 s, their decline in 1989 , and resurgence in 1992? Explain in detail ALL stages of a successful LBO. 6. Why were LBOs able to use such high degree of leverage compared to other businesses? Discuss the advantages and disadvantages of LBO's. What are sources of gain from going private transactions? 7. Discuss the forces driving cross-border mergers. What do research studies say about the premiums paid and the event returns from international M\&A activities? What reasons are provided in the Jiterature behind such premiums? 8. What are the financial characteristics that make a firm vulnerable to a takeover? What defensive measures can ward off unsolicited and unwelcome bidders? What is the effect of such amendments on firm's stock price based on empirical evidence? 9. Explain the following commonly used M\&A terms: - Shark repellents - Pac man defense - White knight/White squire - Greenmail - Poison Pilis/Poise