Ch. 10 M&A Valuation

Question 1

For an M&A transaction in which the purchase price is denominated in FX, the buyer could hedge its risk during the period between the announced date and the closing of the transaction as follows:
‒ A U.S. buyer could purchase an FX ____ and
‒ A foreign buyer could purchase an FX ____

Answer 1

US Buyer could buy a FX call

Foreign buyer could buy a FX put

Question 2

These intangible assets which have a _____ life are / are not amortized over time.

Answer 2

Finite; are amortized

Question 3

What is the unlevering beta formula?

Answer 3

Levered beta / 1 + [(1-t) x (D/E)]