Shareholders of X Co. have decided to sue for appraisal rights. The courts are now trying to determine a price for the shares that the shareholders decided not to sell. Such a trial is known as a determination of: discounted cash flow. fair market value. shareholders' rights. The Price is Right.

Under which of the following conditions are shareholders most likely to be entitled to appraisal rights? a board resolution that eliminates the dividend rights of all shareholders. the election of two board directors. changing the location of the firm's offices. changing the corporate letterhead.

Tim is a shareholder in Y Corp. He has decided that he would like to assert appraisal rights. Which of the following would pose a problem for his being able to assert those rights? The transaction did not provide Y Corp. shareholders with the best deal. Tim sent a letter to Y Corp's secretary prior to the shareholder meeting. Tim voted for the transaction at the annual shareholder meeting. The acquiring firm is a former competitor of Y Corp.

A court has been asked to render a judgment as to the fair market value (FMV) of Z Corp. after a recent merger it conducted with another firm. In evaluating the value of the firm, which of the following items might the court take into consideration? the market price of the consideration paid to the shareholders of Z Corp. a history of the value of Z Corp's stock over the last ten years. competing prices offered by other potential buyers in the transaction. all of the above.

In constructing a discounted cash flow model of a company for appraisal / fair market valuation purposes, the researcher would look at which of the following items? a history of the firm's operating cash flows over a period of time. a projection of the firm's operating cash flows over a period of time. a projection of the firm's terminal value at some point in the future. all of the above

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