1. The concept of price to earnings relative to growth (P/E to growth) discussed in class suggests that if a company is growing meaningfully __________ than the peer group you are comparing it to, it should trade at a relatively __________ multiple to its earnings or cash flow vs its peers.
   1. Slower, higher
   2. Faster, higher
   3. Faster, lower
   4. Slower, similar
   5. Faster, similar
2. Assume there are two lead financial analysts on an M&A transaction, one for the buying entity and one for the selling entity. Although using the same historical figures as a baseline, you would expect that the buying analyst would be more ____________ in their outlook projections whereas the selling analyst is likely to be more___________ with their projections.
   1. Optimistic, optimistic
   2. Conservative, optimistic
   3. Conservative, conservative
   4. Their outlooks should be virtually identical
3. Company C just announced they were acquiring company D at a modest premium in an all stock transaction using a floating exchange rate. If Company Cs stock rose sharply after the announcement and stayed roughly at that level through closing, the markets perception of the transaction would be perceived as _________. After the stock reaction of Company C, shareholders of Company D would ultimately expect to receive ___________ for their shares at closing vs what they expected right after the announcement.
   1. Positive, less
   2. Negative, more
   3. Negative, the same
   4. Positive, the same
   5. Positive, less