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NEW QUESTION: 1
Company AD is planning to acquire Company DC. It is evaluating two methods of structuring the terms of the bid, which will be ether a debt-funded cash offer or a share exchange The following Information is relevant
* The two companies are of similar size and in related industries
* AB's gearing ratio measured as debt to debt plus equity, is currently 30% based on market values. This Is the company's optimum capital structure set to reflect the risk appetite of shareholders.
* The combined company is expected to generate savings and synergies
Which THREE of the following are advantages to AB's shareholders of a debt-funded cash offer compared with a share exchange?
A. More of the synergistic benefits of the acquisition will accrue to AB's current shareholders.
B. WACC will increase f credit worthless falls too low, further increasing the returns to shareholders.
C. Shareholder control will remain with AB's current shareholders
D. Gearing will increase.
E. EPS Mil Increase
Answer: A,C,E
NEW QUESTION: 2
An internal audit manager of a furniture manufacturing organization is planning an audit of the procurement process for kiln-dried wood. The procurement department maintains six procurement officers to manage 24 different suppliers used by the organization. Which of thefollowing controls would best mitigate the risk of employees receiving kickbacks from suppliers?
A. The periodic rotation of procurement officers' assignments to supplier accounts.
B. A pre-award financial capacity analysis of suppliers.
C. An automated computer report, organized by supplier, of any invoices for the same amount.
D. Periodic inventories of kiln-dried wood at the organization's warehouse.
Answer: A
NEW QUESTION: 3
Which feature do you implement so that an interface enters the root inconsistent state if it receives a superior BPDU?
A. root guard
B. loop guard
C. BPDU guard
D. DPDU filter
Answer: A