Q1.. All the following are true of the recent transaction method of target valuation except:

a)It does not require specific estimation of a purchase price premium

b)It includes value of changes to be made in the target

c)It gives more accurate results if the transactions used are more recent

d)It gives more accurate results if the transactions used are truly comparable

Q2. Alternative exit and restructuring strategies include all of the following expect:

a)Divestiture

b)Spin-off

c)Strategic alliance

d)Equity carve-out

Q3. The tangible book value or equity per share method is applicable primarily to the following industries:

a. steel and financial services

b. distribution and financial services

c. electric and natural gas utilities

d. coal and copper mining

q4. All of the following are true of reverse mergers except:

a. may be used to take a private fir public

b. typically cost much less than an IPO

c. may represent an effective alternative to an IPO

d. Often used to take public companies private