(21–1) Define each of the following terms:

a. Synergy; merger

b. Horizontal merger; vertical merger; congeneric merger; conglomerate merger

c. Friendly merger; hostile merger; defensive merger; tender offer; target company;

breakup value; acquiring company

d. Operating merger; financial merger

e. Adjusted present value (APV) model

f. Free cash flow to equity g. Purchase accounting h. White knight; proxy fight i. Joint venture; corporate alliance j. Divestiture; spin-off; leveraged buyout (LBO)

k. Holding company; operating company; parent company l. Arbitrage; risk arbitrage