|
|
Question:36 - 27854* D% j5 y( Y; d( [
Which of the following is NOT a possible consequence of takeover defenses? Takeover defenses:8 s/ v! ?! [8 j; J- w( K$ {
A)7 s. `5 T$ V7 C5 o5 E
provide managers greater job security.$ O! x" Z* N/ [3 N5 q1 S2 }; I* ]
B)
0 j" R& |2 s# ]( Y& d& P U! Nmay start a bidding war for the firm’s shares.
1 \& }0 o% Z, ?# t% QC)
0 f( J% G2 Q6 b6 {change the firm’s legal status from public to private.% w) x! {- U' w0 B
D)- {& G9 `9 N' a2 s+ w
force the acquirer to negotiate directly with the firm’s Board of Directors.
3 W4 S% A9 g0 p* PQuestion:37 - 27901
5 O5 f% b" @( E P9 B3 F, wWhich of the following statements regarding internal capital markets is FALSE?, l9 W* q( q1 _9 d/ H
A)
8 m6 I7 b3 r0 L `Political obstacles are likely to exist in efficiently allocating resources.2 @' c# n2 h$ J& t
B) X9 `' v' c! ^0 J2 `5 w* g+ R! ^2 @
Management can channel free cash flow from mature business lines to high growth ventures.- R- N/ W" e" i& u* G# h
C)7 f" Y- K/ `* I! I' ?
The firm can credibly signal the quality of new ventures.
+ J! Y! E0 c& K6 ^5 {D)
6 T2 C5 C, ~2 H) e& YThe firm can save money by not issuing securities in the capital markets.
% H4 w- Y0 X. y2 P% r4 X; V
9 F1 h, W0 x5 y& Z; UQuestion:38 - 9865
; ?* } _- w6 X6 j) M hOverestimating the growth rate of a firm in using a valuation model would result in a value that is likely to be:: `& @6 @, J. c
A). J0 |) E) w1 {7 b% d
too low.7 _) _$ o& Y% X- d) D( ]' a. \
B)
: v* G1 I& T, M/ G% ^can't tell from this information.
Y% L, s) ~7 @+ c$ }; OC)
6 X/ B( R O4 q7 A0 D( |7 g0 ~- ftoo high.5 \$ ?$ K6 g! j9 q( }% Z; @+ [
D)) F, T1 x2 R9 `% x3 y1 j5 N w
very accurate.
t! `8 _8 B) z8 \5 i
1 ~7 _% [- F$ J. y9 N8 w* c0 \0 W! E. g4 c, A
Question:39 - 9849/ {7 ?. Y! k U1 h& E8 T* H4 ?
The goal of asset valuation, based on the expected future cash flows of an asset, is to establish an asset’s:
- j$ U4 I: O. T, e/ D& T4 A/ JA)
5 S' i: N1 M' D+ D. m) qrelative value.
% w4 c3 f& {! v+ A. i- ]$ c9 e1 dB)4 A/ K7 Y% f3 w2 Z4 l% K: F
future value.( ^5 Y" L+ f0 Q/ y* F# x
C)5 v5 }, Z. v Y1 l) A
intrinsic value." Y p# u( I& x9 n7 W: q
D)
! E/ U9 r) M& }% Mmarket value.: [% F: T! F7 F3 o: F
6 B/ r# T) \3 N6 b+ V7 v3 F+ J
Question:40 - 9947
, K: G" C" x5 d, TRoger 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?
9 q/ N1 t. V# h/ j$ E# r- RA)
/ r1 ?! C8 O% h5 R( [! N3 VAn 18 percent market share is sufficient to create a sustainable competitive advantage.- R6 v, K( F8 ]$ z6 i% W
B)6 v6 t0 U6 C2 }6 y1 `
An 18 percent market share is too large to create a sustainable competitive advantage.7 S& d9 c. s0 g0 {$ E$ _
C)/ Q4 @4 c% j0 e" d' L
Market share goals are not a competitive strategy.
1 c& y2 y5 h5 a# L4 }9 t4 ^6 MD)8 L- g7 U5 M0 B3 L6 I1 q& o
The market share goal must be considered in relation to the number of competitors.
( I# E* Y; h7 D6 { |
|