Please make sure you have a pen, paper and calculator to do the calculations. The total duration for this test is 60 Minutes. Question 18 1pts Taggart Transcontinental and Phoenix-Durango have entered into a stock-swap merger agreement whereby Taggart will pay a 30% premium over Phoenix-Durango's pre-merger price. If Taggart's pre-merger price per share was $15 and Phoenix-Durango's was $30, then the exchange ratio that Taggart will offer is closest to: 1.8.1 0.4:1 2.6:1 2.0:1 Which of the following statements is false? While one study found that those firms that separated the position of CEO and chairman performed better. another found no relation between the independence of kcy board committees and firm performance in the post-Cadbury era. The Exchange Acts of 1933 and 1934, among other things, established the Securities and Exchange Commission (SEC) and prohibited trading on private information gained as an insider of a firm. The Cadbury Commission stiffened the criminal penalties for providing false information to shareholders Many of the problems at Enron. WorldCom, and elsewhere were kept hidden from boards and shareholders until it was too late. In the wake of these scandals, many people felt that the accounting statements of these companies, while often remaining true to the letter of GAAP, did not present an accurate picture of the financial health of a company