The target firm's underutilized borrowing capacity is often considered a source of value.
举一反三
- Which of the following is generally not considered a source of value to the acquiring firm? A: Duplicate facilities B: Patents C: Land on the balance sheet at below market value D: Warranty claims E: Copyrights
- The initial offer price for the target firm is defined as A: The minimum price B: The present value of the minimum price plus some fraction of the present value of net synergy C: The present value of net synergy plus the current market value of the target firm D: The maximum price less the minimum price E: The maximum price less the present value of net synergy
- Earnings are used to analyse profit and are part of calculating a firm’s (share) value. （ ）
- Which one of the following is not one of the steps in the M&A model building process? A: Valuing the acquirer and the target firms as standalone businesses B: Valuing the target and acquiring firms including synergy C: Determining the initial offer price for the target firm D: Establishing search criteria for the potential target firm E: Determining the combined firm's ability to finance the transaction.
- Which of the following statements best compares long-term borrowing capacity ratios?