The acquirers due diligence and evaluation of the target firm are two entirely separate processes. True False

Free cash flows are cash flows that are available to all of the firms investors and are therefore used to value the firm as a whole (both debt and equity claims). True False

The coupon rate of the firms outstanding bonds is an appropriate measure for cost of debt. True False

The reservation value is the maximum amount that an acquirer is willing to pay for the target. True False All else equal, if a restructuring company is in not need of new funds, it would make sense for it to do a spin-off. True False The consideration is the form of payment the acquirer uses to purchase the target. True False