How the Value of the Shares of Each Merging Corporation

question 27

True/False

How the value of the shares of each merging corporation will be deter?mined is stated after the plan of merger has been approved.

Understand the concept of cumulative voting and its significance in corporate governance.

Recognize why preferred stock can be considered similar to debt.

Identify examples of firms that may offer supernormal dividend growth rates and understand the conditions under which this can occur.

Define and understand the characteristics of common stock.

---

Definitions:

Present Values

The current worth of a future sum of money or stream of cash flow given a specified rate of return.

Expected Value Analysis

A statistical technique used to calculate the average outcome when the future includes scenarios that may or may not happen.

Sensitivity Analysis

The process of analyzing the impact of varying key assumptions or input variables on the outcome of a decision or model.

Annual Net Cash Flow

The difference between a company's total cash inflows and outflows over one fiscal year, reflecting its ability to generate cash.