ICMA Exam FMFQ Topic 3 Question 56 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 56
Topic #: 3

[All FMFQ Questions]

A company's share price fall below its net asset value. The company is then the subject of a takeover after which rather than being run as a going concern it is broken up and its assets sold to achieve maximum value. This is an example of which of the following strategies?

ALeveraged investment

BAsset stripping

CMergers & Acquisitions

DLeveraged buyout

Show Suggested Answer

Suggested Answer: D

by Ernest at May 07, 2024, 10:18 AM

Limited Time Offer

25%

Off

Get Premium FMFQ Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Roy

Asset stripping seems like the obvious choice here. The company's assets are being sold off to maximize value, rather than being run as a going concern.

upvoted 0 times

...