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

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Yoko

4 days ago

I'm not sure, but I think it could also be D) Leveraged buyout. What do you guys think?

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Kanisha

11 days ago

I agree with Walton. Asset stripping makes sense in this scenario.

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Walton

16 days ago

I think the answer is B) Asset stripping.

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