Reference no: EM132784249

True or False

Question 1: Going Concem firm value is determined under the going concem assumption The going concem assumption believes that the entity will continue to do its business activities into the foreseeable future

Question 2: Liquidation Value is the net amount that would be realized if the business is terminated and the assets are sold piecemeal

Question 3: Fair Market Value is the price, expressed in terms of cash equivalents at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller acting at arm's length in an open and unrestricted market when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts

Question 4: Fundamental analysts are persons who are interested in understanding and measuring the intrinsic value of a firm

Question 5: Fundamentals refer to the characteristics of an entity related to its financial strength, profitability or risk appetite

Question 6: Activities investors usually do takeovers - they use their equity holdings to push old management out of the company and change the way the company is being run

Question 7: Chartists relies on the concept that stock prices are significantly influenced by how investors think and act Chartists rely on available trading KPIs such as price movements trading volume, short sales - when making their investment decisions

Question 8: Information Traders are Traders that react based on new information about firms that are revealed to the stock market. The underlying belief is that information traders are more adept in guessing or getting new information about firms and they can make predict how the market will react based on this

Question 9: An acquisition usually has two parties the buying firm and the selling firm. The buying firm needs to determine the fair value of the target company prior to offering a bid price

Question 10: Merger is the general term which describes the transaction two companies combined to form a wholly new entity