1. Galeotafiore, of Value Line Publishing, expects future growth to come from several source except which of the following?
Alternative products
Acquisitions
International expansion
Bankruptcy
Consolidation
2. There are several major elements of Buffett’s investment philosophy. Which of the following is not one of the elements?
Focus on wealth creation
Account for the cost of the lost opportunity
Invest on the basis of information and analysis
The alignment of agents and owners is detrimental to firm value
Focus on the time value of money
3. From the point of view of corporate finance, what is the biggest difference between American Greetings and Hallmark?
American Greetings revenues exceed that of Hallmark
Hallmark is a domestic firm while American Greetings expanded its business internationally to over 100 locations
American Greetings owns Crayola while Hallmark owns Nickelodeon
American Greetings is the largest and Hallmark is the third largest greetings card company in the U.S.
Hallmark is privately held and American Greetings is a public company