Suppose in a M&A, a target firm's current market value is $50 million. But you estimate its value - as part of the acquiring firm - to be $60 million. The target firm has 5 million shares outstanding. How much merger premium would be created due to the potential synergies of the merger?

Question 21 options:

1)	$60 million

2)	$50 million

3)	$10 million

4)	$5 million

5)	None of the above

In 2014, Italian Fiat Group Automobiles and Chrysler Corp entered into a merger. The merged firm, Fiat Chrysler Automobiles (FCA), made its Wall Street debut on October 13, 2014. This type of merger can best be described as [I] Cross-border merger [II] Horizontal merger [III] Vertical merger [IV] Conglomerate merger.

Question 25 options:

1)

I and II

2)	II and III

3)	III and IV

4)

I and III

5)	None of the above