Which of the Following Combinations of Asset Structures and Financing

question 109

Multiple Choice

Which of the following combinations of asset structures and financing patterns is likely to create the least volatile earnings?

• A) Illiquid assets and heavy short-term borrowing
• B) Illiquid assets and heavy long-term borrowing
• C) Liquid assets and heavy long-term borrowing
• D) Liquid assets and heavy short-term borrowing

Understand the accounting and tax considerations in mergers and acquisitions.

Compute the appropriate discount rate for valuing free cash flows and interest tax shields during mergers and acquisitions.

Evaluate the financial and strategic considerations behind divestitures and their impact on firm value.

Understand the public perception of science and technology's impact on society.