Question 2) Calculate pro forma combined EPS using the information below: ($ in millions) Pro Form Combined Net Income $1,046 Acquirer Standalone Net Income $775 Standalone Fully Diluted Shares Outstanding 200 Net New Shares Issued in Transaction 40 Tax Rate 40%

	a.	$3.88
	b.	$3.50
	c.	$4.36
	d.	$2.80

*I had answered "B" but it was incorrect

Question 6) Assuming all else being equal, if a company with a P/E of 15x acquires a company with a P/E of 12x in an all-cash deal, the transaction is __________:

	a.	Accretive
	b.	Dilutive
	c.	Breakeven
	d.	Cannot be determined.

*i had answered "A" but it was incorrect

Question 14) As part of the deal negotiations, the acquirer may receive representations and warranties, indemnifications associated with these reps and warranties, or other concessions to alleviate the risk of certain liabilities. Which of the following statements is true regarding these reps and warranties?

	a.	In a private company transaction, structuring the transaction as a stock sale eliminates all liabilities and therefore there would be no reps and warranties provided.
	b.	In a private company transaction, reps and warranties are not typically part of the negotiated transaction.
	c.	In a public company transaction, the reps and warranties continue in effect until the termination date stated in the Definitive Agreement.
	d.	In a public company transaction, the reps and warranties do not survive the closing.