Some Takeover Specialists Look at the Amount of Money a New

question 3

Multiple Choice

Some takeover specialists look at the amount of money a new owner can take out of the firm without harming the business.This is known as

• A) leveraged buyout.
• B) operating cash flow.
• C) free cash flow.
• D) dividends.
• E) shareholder measure.

Apply the concept of unrealized profit or loss elimination in intercompany transactions.

Identify and calculate goodwill and non-controlling interest amounts under different accounting methods.

Identify the effects of intercompany sales of inventory on consolidated financial statements.

Apply depreciation and amortization adjustments in consolidation for assets sold between affiliated companies.

---

Definitions:

Takeover Bid

An offer made to acquire some or all of shareholders' shares in a corporation with the aim of gaining control of the company.

Cumulative Dividend

A feature of preferred stock that entitles shareholders to receive dividends that were omitted in the past.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer.

Stated Capital

The portion of a corporation's share capital that has been formally allocated for issuance and recorded in the company's financial statements.