Series 79 practice questionmediumFairness Opinions
What is a fairness opinion intended to address?
- AWhether the consideration in a transaction is fair from a financial point of view✓ Correct answer
- BWhether the merger is certain to close legally
- CWhether the buyer can refinance debt later
- DWhether the target will outperform peers after closing
Explanation
Why A — Whether the consideration in a transaction is fair from a financial point of view
Whether the consideration in a transaction is fair from a financial point of view A fairness opinion is a financial analysis delivered to a board, usually regarding the transaction consideration to a specified constituency. It does not guarantee value creation or legal compliance.
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