First Half 2 uncements mments essions es e Us es eButton porations site Catalog 365 Stream Course 3 ng Point y Guides nt Course stions 5 299/take D Question 4 The list of commonly observed synergy types, as discussed in one of our class sessions, does NOT include the following: O Combined business creation O Vertical diversification O Shared tangible resources O Shared know-how B Question 5 1 pts The capital markets often view diversification attempts with suspicion because: O The capital markets are notoriously myopic and their short-term reaction never predicts long-term trends accurately A O The above statement is incorrect: The capital markets are enthusiastic about any significant diversification attempts because it helps the companies to balance their cash flows at the peaks and troughs of the economic cycles O The agency theory shows that the top managers typically have incentive structure that is fully aligned with the interests of the firms' shareholders O There were a large number of unsuccessful diversification attempts in the past decades that conditioned markets to expect bad performance from the future attempts Question 6 When discussing the overall acquisition performance, we noted that: O About two-thirds of all acquisitions end up destroying at least some value for the target's shareholders O Practically every vertical integration acquisition results in substantial gains for the acquirer's shareholders D 1 pts 1 pts A To M da