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Question:36 - 27854
9 i! G8 [& _* o6 B8 i) P8 `Which of the following is NOT a possible consequence of takeover defenses? Takeover defenses:
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provide managers greater job security., g* ]9 }! T" L* F
B)
% O: o. O, C2 P* b9 amay start a bidding war for the firm’s shares.
h) F( b, C: u+ o0 e8 ]8 gC)
$ O& S/ h% q* K# qchange the firm’s legal status from public to private.
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1 ^+ _/ S: T. N3 Aforce the acquirer to negotiate directly with the firm’s Board of Directors.
3 r" c1 o+ J9 c% u- JQuestion:37 - 27901
8 {. E: \8 Q4 A5 j2 N* B0 v! _Which of the following statements regarding internal capital markets is FALSE?
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& |. o6 n: P8 q, jPolitical obstacles are likely to exist in efficiently allocating resources.- U& t+ ]/ M1 m
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Management can channel free cash flow from mature business lines to high growth ventures., P5 o* m& @. t- x; c
C)
, v* W) g' w4 L3 C( ^4 VThe firm can credibly signal the quality of new ventures.
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The firm can save money by not issuing securities in the capital markets.
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$ z. b+ K* W7 gQuestion:38 - 9865& |1 d/ u& E! T- P8 t6 J" [0 L
Overestimating the growth rate of a firm in using a valuation model would result in a value that is likely to be:
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4 @3 b* S$ S6 i6 G7 vtoo low.0 `1 S' G2 |0 A5 c
B); _# p1 Y/ X8 o4 ^* T/ v
can't tell from this information.
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6 s! K5 O- K8 z0 }* E7 etoo high.% M0 e9 T/ j6 w
D)
, i9 ^) W+ |- _& R R4 c" pvery accurate.9 D1 F7 I! e. }' V
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Question:39 - 9849
( i) Z3 k) s7 W! c: W# F! |5 oThe goal of asset valuation, based on the expected future cash flows of an asset, is to establish an asset’s:) U+ d- D( B: ]! {# C
A)
; R' L/ D) O$ m- Q7 V: n# Z; T% D9 srelative value.. Y; U7 O, e. t$ ~9 F& b9 ]
B) I0 |9 i$ z3 h: U; Z% z) U
future value.
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$ v# H2 Q7 H. qintrinsic value.
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market value.& b9 w; Z& ]- s% }5 p
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Question:40 - 99471 F% @; V" J' |: _. M1 {0 u
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?) q: n/ g( W. {/ X
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An 18 percent market share is sufficient to create a sustainable competitive advantage.
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An 18 percent market share is too large to create a sustainable competitive advantage.
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. |5 R) k; N" aMarket share goals are not a competitive strategy.
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/ B5 c& M# T, q, s" e2 S& `! lThe market share goal must be considered in relation to the number of competitors.' @6 O2 ~" D& w, s7 P6 L+ Y9 j
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