A Merger Increases the Number of Voting Shares of the Surviving

question 17

Multiple Choice

A merger increases the number of voting shares of the surviving corporation by 23 percent.Which of the following is required in this context?

• A)a unanimous vote of the incumbent directors
• B)a majority vote among the board of directors
• C)a majority vote of shareholders
• D)an affirmative vote by at least 30 percent of shareholders

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Definitions:

Factor Loadings

Quantitative measures of how much a factor affects a given variable, often used in factor analysis to assess investment performance.

Multifactor APT

Multifactor APT, or Arbitrage Pricing Theory, is a model that describes the expected return on a financial asset as a linear function of various macroeconomic factors or theoretical market indexes.

Macro Factors

Economic variables that affect a wide range of assets and securities including inflation, interest rates, economic growth, and political stability.

Factor Portfolio

A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.