Introduc)on

1 = If a take over is declared, Predators share price ?

A Rises because of expected synergies
B Fall because of expected transac)on costs / risks
C Rises if it is a friendly take-over
D None of the answer, there is no general rule
2 = A rise in Dividend might be perceived negaAvely ?
A Yes -The Managt has no growth opportunity
B Yes - If the Dividend yield is > market average
C No - Always perceived posi)vely by Shareholders
D No - If the yield is < market average
3 = To calculate net nancial debt, ConverAble Bonds:
A Are excluded from calcula)on if maturity > 1 y
B Are always excluded from the calcula)on
C Are always included in the calcula)on
D Are included in the calcula)on for the part < 1 y
4 = Everything being equal, to boost ROE, you need to ?
A Decrease Financial Debt
B To Raise Dividends
C Raise Financial Debt
D To cut Dividends
5 = For a normal Firm, the cheapest way to nance ?
A Is to issue new stocks
B Is to issue new Financial Debt
C Is to take the cash available in the balance sheet
D Is to issue Conver)ble Bonds

legland@hec.fr

6 =To discount a Flow of Dividend (Div. Disc. Model) ?

A You use the Weighted Average Cost of Capital
B You use the Dividend Yield
C You use Interest rates + Risk Premium
D You use the Capital Asset Pricing Model
7 = Window Dressing is absolutely illegal ?
A Yes, of course
B Yes, in US GAAP, but not in IFRS
C Yes, as it gives a false image of accounts
D No, it is accepted, if you s)ck to accoun)ng rules
8 = Central banks decide the value of ?
A Both Short Term and Long Term Interest Rates
B Only of Short Term Interest Rates
C Only of Long Term Interest Rates
D The money supply. It then indicates ST Int. Rates
9 = Rising Interest rates are generally ?
A Nega)ve for Fin. markets (Higher Disc. Rates)
B Posi)ve for Fin. markets (Higher Yields)
C Posi)ve for Fin. Markets (Currency goes up)
D Posi)ve for Fin. Markets (Econom. fastly growing)
10 = In 08 / 09 Fin. Crisis, Burgundy wines prices went ?
A Up, as they were seen as a safe haven
B Down, as all Asset Prices are correlated
C Up; Lower Int rates: low n costs for produce)
D Up; Lower Int. Rates is posi)ve on Discount rate