Question 9 (4 points) Listen A group of executives comprising the current chairman and vice-presidents of Kennesaw Corp., have created a private investment firm to acquire the company. This group of individuals has also secured financing for the majority of the purchase cost by pledging their personal assets as collateral for the loan. The purchase of this firm is referred to as: 1) Proxy contest 2) Leveraged buyout 3) Consolidation 4) White knight acquisition Question 10(4 points) Listen When an acquisition is undertaken with the only purpose in mind is to diversify the firm, then the following will be observed: O 1) There is generally a positive synergy a occurring to all the combined firm divisions. 2) there is generally no value added to the combined entity 3) There is generally reduction in the systematic risk and an increase in the value of the firm 4) There are benefits to the shareholders since the latter should enjoy an otherwise unobtainable diversification