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:

Hyperemia

An excess of blood in the vessels supplying an organ or other part of the body.

Induration

Hardening of a tissue, particularly the skin, because of edema or inflammation.

Blanching

A temporary whitening of the skin due to lack of blood flow, often used as a test for skin elasticity or capillary refill.

Transparent

Characterized by clarity and openness, allowing for visibility or understanding; often used figuratively to describe clear, honest communication.