Which of the Following Is NOT an Element of a Merger

question 38

Multiple Choice

Which of the following is NOT an element of a merger?

• A) The merger agreement is negotiated by the boards of the two companies.
• B) Consummation of a merger generally depends on approval of the transaction by the boards and the shareholders of both companies.
• C) A merged corporation must adopt a name that does not belong to either of the parties to the merger.
• D) The disappearing corporation relinquishes its separate corporate existence and becomes part of the surviving corporation.

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Definitions:

Book Values

The net value of a company's assets, excluding any liabilities, typically used to determine its financial strength.

Market Values

The current cost at which assets or services are traded on the open market.

CAPM Approach

Capital Asset Pricing Model, a framework used to determine the theoretical appropriate required rate of return of an asset, considering risk and the cost of capital.

Retained Earnings

The portion of a company's net income that is kept within the company rather than distributed to shareholders as dividends.