Question
1. A firms enterprise and equity values will increase in response to all of the following variables assuming other things are equal except for a)
1. A firms enterprise and equity values will increase in response to all of the following variables assuming other things are equal except for
a) An increase in profitable revenue growth | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
b) A reduction in cost of sales as a percent of sales | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
c) An increase in the firms weighted average cost of capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
d) A decrease in the firms weighted average cost of capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
e) A decrease in SG&A as a percent of sales
2. A takeover creates value for the acquirer as long as which of the following statements is true:
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