Valuation is a continuation of the earlier steps of strategy and accounting analysis. This statement is:

a.

True valuation requires an understanding of performance and ratios.

b.

False valuation is a standalone exercise.

c.

False valuation precedes the strategy and accounting analysis.

d.

True valuation is a discrete exercise not connected to the rest of the analysis.

Seasonality is present in:

a.

Construction firms.

b.

Firms that are affected by the weather.

c.

Areas such as the fashion industry and retail firms.

d.

All of these choices.

Which of the following statements is true?

a.

Premiums differ for friendly and hostile acquisitions as hostile takeovers are more likely to be overpaid.

b.

Premiums differ for friendly and hostile acquisitions as friendly takeovers are more likely to be overpaid.

c.

Premiums cannot be compared between friendly and hostile acquisitions.

d.

Premiums are almost identical for friendly and hostile acquisitions.

Banks have an advantage in extending credit in certain situations because:

a.

They do not have to monitor the firm.

b.

They are regulated.

c.

They gain knowledge of operations through contact with managers.

d.

All of these choices.