(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

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