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  • Examination Paper Fall 2017

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    Talha Ahmed
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    The document contains an exam with multiple choice and short answer questions about mergers and acquisitions, cost of equity calculation, definitions of financial terms, methods of valuing M&As, options, dividend payout policy, and corporate restructuring. It asks the student to describe examples of why M&As happen, define various types of mergers and contracts, explain ways M&As are valued, distinguish call and put options, discuss dividend irrelevance and tax preference theories, and explain different forms of corporate restructuring.

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    The document contains an exam with multiple choice and short answer questions about mergers and acquisitions, cost of equity calculation, definitions of financial terms, methods of valuing M&As, options, dividend payout policy, and corporate restructuring. It asks the student to describe examples of why M&As happen, define various types of mergers and contracts, explain ways M&As are valued, distinguish call and put options, discuss dividend irrelevance and tax preference theories, and explain different forms of corporate restructuring.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    13 views1 page

    Examination Paper Fall 2017

    Uploaded by

    Talha Ahmed
    The document contains an exam with multiple choice and short answer questions about mergers and acquisitions, cost of equity calculation, definitions of financial terms, methods of valuing M&As, options, dividend payout policy, and corporate restructuring. It asks the student to describe examples of why M&As happen, define various types of mergers and contracts, explain ways M&As are valued, distinguish call and put options, discuss dividend irrelevance and tax preference theories, and explain different forms of corporate restructuring.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Student Name: __________________ Student I.D.

    ______________

    Q1. Describe with an example why do merger and Acquisition Happen? (08 marks)

    Q2. If the risk-free rate is 3%, the expected market risk premium is 5%, and the company’s
    stock beta is 1.2, what is the company’s cost of equity? (4 marks)

    Q3. Define the following terms. Any five (20 marks)


    a. Horizontal Merger
    b. Vertical Merger
    c. Conglomerate Merger
    d. Forward contract
    e. Future contract
    f. Stock Dividend
    g. Stock split

    Q4. Describe various ways in which Mergers and Acquisitions are valued? (07 marks)

    Q10. What is an Option? Distinguish between Call option and Put option by giving
    Appropriate Example. (12 marks)

    Q.11.What do we mean by Dividend payout policy? Briefly explain Dividend Irrelevance and
    Tax Preference Theory? (10 marks)

    Q12. What is Corporate Restructuring? Explain different forms of corporate restructuring?


    (13 marks)

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