|
|
Question:36 - 27854. g& q0 [7 `0 [. o t7 O
Which of the following is NOT a possible consequence of takeover defenses? Takeover defenses:- l$ _$ b; k& M
A)
$ R' G1 r% x' }1 g# `6 J1 rprovide managers greater job security., V6 C- {# e! L& `4 {* A. I! y
B)( V$ I! U* h% f6 x
may start a bidding war for the firm’s shares.* \9 I% u( Q4 I2 O
C)7 K9 ]3 [$ M( y! }& h
change the firm’s legal status from public to private.
6 j4 z2 H, X( s: L7 C5 h7 ED)
! G* D4 n1 u) e0 U& Rforce the acquirer to negotiate directly with the firm’s Board of Directors.' c# [$ j X6 s- S0 B) \3 K3 B, |! S
Question:37 - 27901
& v' A4 K! f1 kWhich of the following statements regarding internal capital markets is FALSE?
7 a# i4 t/ F, V/ z$ r% kA)
/ f9 D6 S, ~ z) TPolitical obstacles are likely to exist in efficiently allocating resources.
* D7 @' S& L# |% lB)
. r7 |! ^4 j3 k, tManagement can channel free cash flow from mature business lines to high growth ventures.
8 i4 V/ l: r5 R+ sC)/ Q. M* f- z% Q# x
The firm can credibly signal the quality of new ventures., t9 x! L9 \5 J/ R. N) A
D)
9 K5 R: v8 U) g( }# w0 kThe firm can save money by not issuing securities in the capital markets.
) k- f7 O! T. f9 `+ h- v c8 f D3 W; U- ]7 G1 [( N9 b
Question:38 - 9865
7 U i" I, n8 |0 l- P3 x" sOverestimating the growth rate of a firm in using a valuation model would result in a value that is likely to be:
* U! @, N( q" F6 @6 [A)
" t. b3 m0 B4 X* t$ Wtoo low. c* H* k8 g% c' t4 B
B)
% T' x4 h, s1 `& C* R% V! y' wcan't tell from this information.7 j& J- x3 U# H3 x+ z- f
C)
7 t3 d3 `. c( p/ z" X; ntoo high.: q k: b; R0 ~4 a4 L c
D)
# g5 |% E% g$ f/ v3 a, x7 A; c; every accurate.
0 f! z4 P' q! c+ z' X3 v, I X. E: W$ N# W: ]. E; \
7 I0 r i) \* N/ M% f, ~Question:39 - 98495 l0 @$ q1 S. {( S
The goal of asset valuation, based on the expected future cash flows of an asset, is to establish an asset’s:8 k% t( b. \! X
A)
! N, E0 g% g3 M3 m, d8 p5 a: V7 drelative value.
9 F1 ] Y$ ~9 ^* XB)
) [# k7 k! h2 }+ Qfuture value.
1 ]+ R/ h) l( \4 X0 V. h! { oC)
0 o" n& W4 T* w; ? P% M8 tintrinsic value. Y! T2 Z& z( O9 N6 _ r8 c
D)
! r+ v- L2 L1 T4 F; |* f" R) tmarket value.
) H$ q. B9 ~6 T+ ^( @& S
0 t( U v2 y& [: E# EQuestion:40 - 9947
8 M4 t# @" o8 I* W! |2 |Roger Miller is the CEO of MetaCorp. MetaCorp is attempting to implement a strategic plan to establish a sustainable competitive advantage. The main thrust of the plan is to achieve a market share of at least 18 percent. Miller hires a strategy consultant to review the plan. The consultant concludes that MetaCorp’s strategic plan is inadequate. Which of the following is a likely reason for the consultant’s conclusion?. e3 [: n7 v$ h( m
A)! Q, a6 R' t. u# H5 o) L
An 18 percent market share is sufficient to create a sustainable competitive advantage./ l8 \( f* g( A; O1 \
B)
# T) ?( ?2 R: p3 y% P* MAn 18 percent market share is too large to create a sustainable competitive advantage.
1 s8 J: J8 R0 `# r$ HC)$ w' P4 ]! b) L
Market share goals are not a competitive strategy.
- F {6 |0 e& b z: }D)$ z4 }# z3 c- G4 |1 O; C# E! T
The market share goal must be considered in relation to the number of competitors.7 r$ S S1 @ z$ f( P
|
|