Chapter 20 45) An example of a horizontal merger would be A) Pepsi and Sears. B) McDonald's and Pillsbury. C) Pepsi and Frito Lay. D) Coca-Cola and Dr Pepper. 46) The price that a company has to pay to purchase another firm is usually A) the book value B) the market value C) some premium over the current market value. D) some discount of the current market value. 47) White knights A) advise companies on ways to avoid being taken over. B) offer a higher purchase price and "friendlier offer" in the event of an unsolicited and unfriendly takeover attempt. C) attempt to make money in the stock market on stocks that are likely merger candidates. D) buy depressed stock of quality companies when merger talks are discontinued. 48) Which of the following is NOT a method of avoiding a takeover? A) Increasing the firm's cash level B) Moving corporate offices to advantageous states C) Staggering the election of boards of directors D) Buying back shares