1. Why do most leases have expensive cancellation provisions? Does the existence of this provision shift risk to the lessor or to the lessee?

2.Starting in 2019 all lease obligations must show up on the balance sheet of a corporation.This is effect does away with what type of lease in accounting speak the operating lease or the capital lease?

3.Is the residual value more risky or less risky than the actual lease payments? And at what cost of money (or rate) do you bring the residual value back to present?

4.ATT's purchase of Time Warner (owners of HBO and other content producers) would be a vertical or horizontal merger?

5.Would increasing the size of the organization without any cost savings or pricing power be a value or management related reason of a merger.

6.Would gaining a lower the cost of capital with a merger be a value or management related reason for merging? Pick one.

7.The more synergy the wider or thinner the spread between the minimum exchange ratio and the maximum exchange ratio?

8.You own a company and it is being purchased by another company.You believe the synergistic benefits from the merger will materialize in the future.When you are negotiating the sale of your company, should you push for a stock-for-stock exchange or a cash-for-stock exchange in selling your company (disregard any tax consequences)?