4 Simple Corporate Finance MC questions, urgent

Posted on 2014-04-03 11:05:00 in Management by JOHN

I really need the answers, thanks!!!!



1.Which of the following are reasons why a firm may want to divest itself of some of its assets?

I. to raise cash

II. to get rid of unprofitable operations

III. to get rid of some assets received in an acquisition

IV. to cash in on some profitable operations



A.

I and II only



B.

I, II, and III only



C.

?I, III, and IV only



D.

II, III, and IV only



E.

I, II, III, and IV





2.Which of the following are uses of cash?

I. marketable securities are sold

II. the amount of inventory on hand is increased

III. the firm takes out a long-term bank loan

IV. payments are paid on accounts payable?



A.

I and III only



B.

II and IV only



C.

I and IV only



D.

II and III only



E.

II, III and IV only



Which of the following activities are commonly associated with takeovers?

I. the acquisition of assets

II. proxy contests

III. management buyouts

IV. leveraged buyouts?



A.

I and III only



B.

II and IV only



C.

I, III, and IV only



D.

I, II, and IV only



E.

I, II, III, and IV



Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 1,800 shares outstanding at a price of $15 a share. What is the value per share of the merged firm?





A.

$19.00



B.

$19.18



C.

$19.44



D.

$20.00



E.

$20.33

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