Methods of Determining the Value of a Target in a Merger

question 49

Multiple Choice

Methods of determining the value of a target in a merger or acquisition include:

• A)the discounted cash flow method and the price-earnings method.
• B)the weighted average cost of capital method and the discounted cash flow method.
• C)the present value method and the price-earnings method.
• D)the discounted cash flow method and the earnings-per-share method.

---

Definitions:

Hostile Feelings

Negative and aggressive emotions directed towards others, which can lead to antagonistic attitudes or behaviors.

Cultures of Honor

Social groups that place a high value on the integrity and reputation of their members, often responding aggressively to insults or threats.

Collectivist Cultures

Societies that prioritize the group over the individual, emphasizing interconnectedness, cooperation, and group goals.

Aggression

Behavior intended to harm or injure another individual, either physically or psychologically.