CA Final Mergers Acquisitions and Corporate Restructuring — practice questions
25 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Final Mergers Acquisitions and Corporate Restructuring in the app →A horizontal merger combines firms that:A vertical merger combines firms that:A conglomerate merger involves:Synergy in a merger refers to:A reverse merger generally involves:Acquirer A (1,00,000 shares @ Rs 200) acquires Target T (40,000 shares @ Rs 150). Combined post-merger value wExchange ratio in a stock-for-stock merger is most commonly fixed using:A 'white knight' takeover defence involves:Poison pill defence works by:A spin-off creates a new independent company by:Split-up restructuring divides the firm so that:Equity carve-out differs from spin-off in that carve-out involves:Leveraged buyout (LBO) is typically financed primarily through:Management buyout (MBO) is best described as:Acquirer A has EPS Rs 20 and P/E 15; Target T has EPS Rs 12 and P/E 10. After all-stock acquisition with synerSynergy value: standalone A value Rs 800 crore, standalone T Rs 200 crore, combined post-merger value Rs 1,050Maximum offer price A should pay for T given standalone T value Rs 200 crore and expected synergy Rs 50 crore Exchange ratio: A trading at Rs 200; T at Rs 150; A offers shares such that T shareholder receives shares wortCross-border M&A introduces incremental risks not seen in domestic deals primarily because of:Pac-Man takeover defence involves:Greenmail refers to:Demerger versus divestiture: a demerger restructures the existing legal entity, while a divestiture:SPAC (Special Purpose Acquisition Company) raises capital initially to:Premium paid in an acquisition is most often computed as:Failure causes for M&A most commonly cited include: