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4 Cards in this Set
- Front
- Back
What is meant by the "integrity" of a pro forma? |
Pro forma statements have integrity if the parts tie together according to the account relations that govern financial statements. |
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What is a red-flag indicator? |
Feature within or outside financial statements that indicates fall in profitability in the future. |
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Why might shares in acquirer decline on announcement of acquisition? |
Market believes:
- Acquirer overpaying for acquisition - Acquirer is using shares to acquire which may indicate that acquirer's shares are overvalued |
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What is the value of the firm? |
Value of operations (use NOA equation) |