Question: PLEASE ANSWER ASAP!!!! I will UPVOTE!!!! Question 7 5 pts Valuing synergies of the post acquisition company are very important. Which of the following is

PLEASE ANSWER ASAP!!!! I will UPVOTE!!!! PLEASE ANSWER ASAP!!!! I will UPVOTE!!!! Question 7 5 pts Valuing synergies

Question 7 5 pts Valuing synergies of the post acquisition company are very important. Which of the following is not a positive synergy for shareholders that may result from the acquisition? Being able to take longer and more expensive executive vacations for corporate retreats. O Borrow additional debt from large sources of capital with lower required yields. Using existing Net Operating Loss carry forwards to reduce the tax liability of the combined firm. O Being able to raise prices because of reduced competition, increase production because of economies of scale and reduce variable costs due to negotiating power with suppliers. U Question 8 5 pts True or False? According to the lecture and as supported by the academic research mentioned, Merger and Acquisition value creation is more effective when it is based primarily upon Operating Synergy rather than Financial Synergy. O False O True Question 9 5 pts True or False? According to the lecture, Private Equity led Leveraged Buyouts (LBOs) are commonly financed with as much as 90% debt and very little equity. O False O True Question 10 5 pts There are many economic and financial factors leading to LBO transactions. Which of the following is not one of the economic and financial factors mentioned in the lecture? Financial markets offering easy liquidity, highly leveraged, and big transaction sizes with junk bonds High valuations in the stock market predicted to occur in 2-5 years when Private Equity acquirers will be likely to exit the LBO at a high price Defensive tactic of insiders to prevent an acquisition by an outside firm High Q ratios (above 1.9)

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