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1. The CEO of XYZ Company owns 3% of the company and is considering an acquisition. If the acquisition destroys $50 million of the companys

1. The CEO of XYZ Company owns 3% of the company and is considering an acquisition. If the acquisition destroys $50 million of the companys value, but the present value of the CEOs compensation increases by $5 million, will he be better or worse off?

2. Explain the difference between positive and negative cash flow.

3. Explain working capital in terms of mergers and acquisition metrics. What is its impact?

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