Question 8) Which of the following statements are true regarding synergies?

	a.	Potential synergies from a combination should be considered confidential information and not publicly disclosed.
	b.	Cost synergies are highly speculative and should not be included in a proper valuation analysis.
	c.	Cost synergies which are easily quantifiable (such as headcount reduction and facility consolidation) tend to have a higher likelihood of success than revenue synergies.
	d.	Revenue synergies from new revenue (such as cross-selling and new distribution channels) tend to have a higher likelihood of success than cost synergies.

* i answered "B" but it was incorrect

Question 12) Using the information below, calculate the allocable purchase premium. ($ in millions) Equity Purchase Price $3,000.0 Shareholders Equity $2,000.0 Existing Goodwill $ 250.0

	a.	$1,750.0 million
	b.	$5,000.0 million
	c.	$1,250.0 million
	d.	$5,750.0 million

*i had answered "B" but it was incorrect

Question 13) Debt financing fees in an M&A deal are:

	a.	Capitalized
	b.	Expensed immediately
	c.	Written off
	d.	Not applicable

*i had answered "B" but it was incorrect