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The synergies of a merger add so much value to the combined firm that, upon announcement of a merger, the stock prices of both the target and the acquirer increase the same relative amount.

Which of the following was originally developed to differentiate organic from functional disorders and tomeasure change in cognitive impairment, and was not intended to be used as a diagnostic tool?

The date on which a firm pays out dividends is called the ________ date.

Brutus Company has announced plans to acquire Buckeye Enterprises. Brutus is trading for $25 per share and Buckeye is trading for $30 per share, with a pre-merger value for Buckeye of $3 billion dollars. If the projected synergies from the merger are $650 million, what is the maximum exchange ratio that Brutus could offer in a stock swap and still generate a positive NPV?

An investor estimates the value of a firm which manufactures cookware by examining the cash flows of similar firms. Which of the following is assumed to be the same for these firms?

Assume Brutus Co. has $10 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per year in subsequent years which they can pay out as a dividend. If Brutus’s unlevered cost of capital is 8%, then the enterprise value of its ongoing operations is PV(FCFs) = $40 million/8% = $500 million.Brutus’s board is meeting to decide how to pay out its $10 million in excess cash to shareholders. The board is considering two options: 1) Use the $10 million to pay a $1 cash dividend for each of Brutus’s 10 million outstanding shares2) Repurchase shares instead of paying a dividend In perfect capital markets, which would investors prefer?

With respect to dividends, the following represents the chronological order of events from earliest to latest:

When the cause of community-acquired pneumonia (CAP) is bacteria, which of the following is the most common pathogen, with about 50% of people with CAP requiring hospitalization?

When a firm repurchases shares, the supply of shares is ________, but at the same time, the value of the firm’s assets ________.  

Brutus Co. has nine million shares outstanding, generates free cash flows of $10 million each year and has a cost of capital of 7%. It also has $50 million of cash on hand. Managers at Brutus are deciding whether to distribute the $50 million in cash to shareholders through a repurchase or invest the $50 million in a project that generates $4 million in free cash flow in perpetuity. Should mangers invest in this project or repurchase shares?