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NEW QUESTION 53
A profit-seeking company intends to acquire another company for a variety of reasons, primarily to enhance shareholder wealth.
Which THREE of the following offer the greatest potential for enhancing shareholder wealth?

A. Creating new opportunities for employees.B. Acquiring Intellectual Property assets.C. Elimination of existing competition.D. Exploiting production synergies.E. Achieving greater cultural diversity.F. Achieving more press coverage for the company.

Answer: B,C,D

 

NEW QUESTION 54
Which TIIRCC of the following are most likely to reduce the long term credit rating co a company?

A. The issue of new shares where the funds raised are invested in a project that has an NPV of nil.B. Loss of a major customer that contributed 30% of sales revenue.C. Disposal of a loss-making division where the funds raised will be used to pay a special dividend to shareholders.D. The issue of a new bond where the funds raised are invested in a project that has an NPV of nil.E. The issue of new shares where the funds raised are invested in expanding into a new nigh risk market.

Answer: B,C,D

 

NEW QUESTION 55
A company has just received a hostile bid. Which of the following response strategies could be considered?

A. Revalue non-current assetsB. Poison pill strategyC. Approach a White KnightD. Change the Articles of Association to amend voting rights

Answer: C

 

NEW QUESTION 56
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