blog

1. Question 1 You are the Chief Executive Officer (CEO) and considering a diversification. Your Chief Financial Officer (CFO) recommends an acquisition, whereas an external advisor recommends an alliance. Historically,…

5. Question 5 In 2017, a merger was announced between Essilor (a French producer of lenses) and Luxottica (an Italian producer of frames for glasses). Below are some statements from…

4. Question 4 “If you want to diversify, buying a well-performing company is always a good bet.” 1 / 1 point   False   True     The well-performing company may not be…

3. Question 3 Your company is looking to diversify into a new business. You have short-listed a partner who can provide you with the key resource you need to operate…

2. Question 2 Multi-business firm Xandou has 3 businesses. To investigate the existence of corporate advantage, which thought experiment would you do? 1 / 1 point   Stop collaboration between Xandou’s businesses  …

1. Question 1 Based on the text below from Berkshire Hathaway’s annual report 2016, how would you describe Berkshire Hathaway Automotive Group, Inc.’s main business? Berkshire Hathaway, annual report 2016:…

5. Question 5 The share price of multi-business firm Wow! is $10.00. Using the average earnings multiples of focused peers, a sum-of-the-parts analysis gives an equity value per share of…

4. Question 4 You are working at the headquarters of Maia Magnificent, which produces mountaineering and ski equipment. Your CEO has asked you to calculate the enterprise value and equity…

3. Question 3 A corporate strategy based on selection of businesses, without modification of businesses, is more likely to work in inefficient financial markets. 1 / 1 point   False   True  …