Please answer true or false for the following:

1. A divestiture is any combination that forms one unit from two or more previously separate units.

2. A primary motivation behind many mergers is to increase the value of the combined enterprise.

3. The market multiple method of valuing an acquisition candidate is the simplest method and also generally the most accurate.

4. Bankruptcy studies indicate that in a liquidation proceeding in federal bankruptcy court, common shareholders of the firm being liquidated typically receive 75% of the value of their initial stock investment, on average.