Which Factors Would Be Considered in Determining the Feasibility of Financing

question 84

Multiple Choice

Which factors would be considered in determining the feasibility of financing a proposed takeover?

• A) Potential dilution in EPS of the combined firms.
• B) Impact on overall borrowing costs of the combined firms.
• C) Possible violation of loan covenants on existing debt of the acquiring company
• D) Return on total capital of the combined firms
• E) All of the above.

---

Definitions:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates, including both natural and built factors.

Experiences

Events or occurrences that leave an impression on someone, contributing to their knowledge or understanding of the world.

Biological Perspective

An approach in psychology that examines behaviors, emotions, and thoughts through a biological lens, emphasizing genetic, hormonal, and neurological influences.

Bodily Events

Physiological occurrences within the body, such as hormonal changes, muscle contractions, or neural activities.