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A unique feature of Merger stat/Shannon Pratt's control premium study is a transaction code by type of transaction. i.e.:

  1. F- Financial
    H-Horizontal integration
    V-Vertical integration
    C-Conglomerate
  2. F- Financial
    H-Hedged Value
    V- Vertical integration
    C- Corporations
  3. F- Funds
    H- Horizontal value
    V- Vertical value
    C- Control value
  4. C- Control and control risk
    H- Hedging
    F- Financial
    V-Vulnerability

Answer(s): A



"A takeover model became a significant explanatory variable for firms that had no cottail. A voting power model was a significant explanatory variable for firms that had cottail provision." This is the conclusion of:

  1. Robinson, Rumsey and white study
  2. Robinson, Richard and Black study
  3. Mergers stat/Shannon Pratt's control premium study
  4. Jeff, Jame and Chris study

Answer(s): A



About half the state and many individual companies have statutes or articles that require a super majority to effect certain corporate actions. If the minority block is of sufficient size to block such actions, there may be cause to reduce the discount for lack of control. In most cases, this would not be grounds for a sight reduction in the discount. Which of the following term is related to this scenario?

  1. Swing vote
  2. Takeover
  3. Blocking power
  4. "Coattail" protection

Answer(s): C



Supermajority vote requirements and state dissolution statues are the factors that influence:

  1. Swing vote
  2. Blocking power
  3. Lack of control discount
  4. Ultimate rate of return produced by the interest.

Answer(s): C






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