The Threshold for Pre-Merger Notification in Canada for Certain Transactions

question 21

Multiple Choice

The threshold for pre-merger notification in Canada for certain transactions is met if

• A)the value of the target firm or the assets being acquired exceeds $40 million or where the combined revenues of the entities involved exceed $400 million per year.
• B)the entities involved are engaged in bid-rigging and their combined revenues exceed $400 million per year.
• C)the entities involved are worth more than $100 million or their combined revenues exceed $400 million per year.
• D)the value of the target firm or the assets being acquired exceeds $73 million and the combined assets or revenues of the entities involved and their affiliates exceed $400 million per year.
• E)there is an abuse of dominant position and the combined revenues of the entities involved exceed $400 million per year.

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Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Pay Back

Refers to the time period required for an investment to generate cash flows or profits to cover its initial cost.

Accounting Break-even

The point at which total costs match total revenues, indicating that a business is neither making a profit nor a loss.