A Fairness Opinion Is Used Most Often When

question 31

Multiple Choice

A fairness opinion is used most often when:

• A)An unsolicited hostile tender offer is received from a potential acquirer who owns no stake in the target firm.
• B)A controlling shareholder seeks approval for an amalgamation.
• C)Determining whether the exchange ratio in a stock swap transaction is appropriate.
• D)None of the above.

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Definitions:

Audition

The sense or act of hearing.

Olfaction

The sense of smell, a chemical sense that detects airborne molecules and contributes to taste and environmental awareness.

Cochlear Hair Cells

Sensory cells located in the cochlea of the ear; they are essential for converting sound vibrations into electrical signals for the brain to interpret as sound.

Localize Sound

The ability of an organism to determine the origin of a sound source in its environment.