In Valuing a Target of a Merger or Acquisition,the WACC

question 43

Multiple Choice

In valuing a target of a merger or acquisition,the WACC is used to:

• A)discount free cash flow and salvage values.
• B)value all assets of the target.
• C)determine the political risk that the target faces.
• D)determine the future value of the assets of the target.

---

Definitions:

Self-Fulfilling Prophesy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Mass Education

A system of education designed to provide basic education to large populations at once, typically through public schooling.

Gender Roles

The behaviors, tasks, and responsibilities that a society considers appropriate for men, women, and gender-diverse individuals.

Academic Dishonesty

is any type of cheating that occurs in relation to a formal academic exercise, violating the integrity of the educational process.