FIVE:

Synergy may result from which of the following?

a.Enhanced cash flow

b.Diversification

c.Excess cash

d.All of the above

Replacement cost valuation is based on

a.Book Value

b.Net asset value

c.Current market price

d.None of the above

When projected assets are more than projected liabilities and owners equity, the plug will be

a.notes payable

b.Notes Receivable

c.Cash

d.None of the above

Gadsen acquires Digital Corporation which is upstream in the marketing chain. This is an example o

a.diversification

b.Vertical integration

c.Horizontal integration

d.None of the above

Synergy between two companies:

a.is the complimentary situation where value is created in the joining of the firms

b.may result in the improvement of the acquirers bottom line

c.could be defined by purely qualitative benefits

d.A and C

e.A, B, and C

The percentage of net income that a company distributes in dividends is referred to as the

a.EPS

b.Payout Ratio

c.ROA

d.ROE

e.None of the Above