1. All of the following are likely to cause a merger to be called off, or cancelled, except

a) The synergy benefits are only estimated, but not certain, pre-merger

b) The 2 merging firms represent about 50% of market share in their industry

c) A change in foreign government policy in an international merger

d) The merger premium causes much interest, pre-merger, in the firm targeted to be acquired

2.

To enable an immediate increase in EPS, a company could do all of the following, except:

a) Cost reductions

b) Issue new shares of its stock

c) Merger

d) Stock buyback