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a . If the Pro Forma EPS of two combined companies is higher than the EPS of the acquirer on a standalone basis, the transaction

a. If the Pro Forma EPS of two combined companies is higher than the EPS of the acquirer on a
standalone basis, the transaction is said to be
A. Accretive
B. Dilutive
C. Breakeven
D. Consensus
b. Which of the following historical financial data is the least relevant for framing projections and per-
forming LBO analysis?
A. Sales growth
B. EBITDA and EBIT margins
C. Capex
D. Interest Expense
c. Under what circumstances might a strategic buyer use LBO analysis
A. To determine the debt capacity of their company
B. To determine the price a financial sponsor bidder can afford to pay when competing for an asset
in an auction process
C. To help spread comparable companies analysis
D. Strategic buyers would not use LBO analysis
d. The sum of the mandatory and optional repayments for each debt instrument from the debt schedule
is linked to
A. Balance Sheet
B. Cash Flow Statement
C. Income Statement
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