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Are the following statements true or false? In case of false, a brief explanation is required. (a) In the context of a corporate acquisition, a
Are the following statements true or false? In case of false, a brief explanation is required. (a) In the context of a corporate acquisition, a go-shop period offers the acquirer the opportunity to look for better and less expensive target companies. (b) In the context of hostile takeovers, the acquiring company typically issues so-called poison pills, i.e., additional shares at low prices, so as to have more cash to acquire the target company. (c) In contrast to a strategic buyer, a financial buyer typically acquires companies in the financial sector. (d) In a leverage buyout transaction, the financial sponsor uses leverage loans when the target company has stable cash flows. (e) The general partner of a private equity fund cannot request a catch-up if there is no preferred returns for the limited partners. f) A startup firm that already has high earnings and a lot of free cash flows is unusual and thus called a Unicorn in the venture capital terminology. (g) When a venture capital fund invests in a portfolio company, it typically obtains preferred or convertible preferred stocks. (h) A quick ratio provides information about how easy a company can sell its inventories, where a high ratio means that inventories are more liquid and can be sold at higher prices
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