Real Options Can Affect the Value of a Potential Target

question 32

Multiple Choice

Real options can affect the value of a potential target in a merger or acquisition.The acquiring firm,in determining how real options affect the value of the target must,most importantly,consider:

• A)whether the real options belong to the target or to a subsidiary of the target.
• B)how restrictions on remittances affect the real options.
• C)whether the real option requires additional investments.
• D)when the real options will be exercised.

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Definitions:

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution grants citizenship to all persons born or naturalized in the U.S., and guarantees all citizens "equal protection of the laws," significantly impacting civil rights.

Antifederalists

Individuals or groups opposed to the creation of a stronger U.S. federal government and the ratification of the Constitution in 1787, advocating for more power to states.

Bill of Rights

A collective term for the first ten amendments to the United States Constitution, guaranteeing such rights as freedom of speech, assembly, and worship.

Federalists

A political group in early U.S. history that advocated for a strong federal government and supported the ratification of the U.S. Constitution.