- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 18. Mergers and Acquisitions
- Subject 9. Benefits from Mergers
CFA Practice Question
Based on past empirical results, the characteristics of M&A deals that create value for acquirers are:
II. The transaction premiums are relatively low.
III. The number of bidders is high.
IV. The initial market reaction is favorable.
I. The seller is strong.
II. The transaction premiums are relatively low.
III. The number of bidders is high.
IV. The initial market reaction is favorable.
Correct Answer: II and IV
Correct statements: I - The buyer is strong. III - The number of bidders is low.
User Contributed Comments 2
| User | Comment |
|---|---|
| ehc0791 | III is opposite of explaination |
| quanttrader | create value by minimizing bid price |