1. What synergies exist in the combination of AOL/TWX? 2. What evidence of capital market efficiencies or lack thereof existed in the circumstances surrounding the AOL/TWX merger announcement and subsequent price fluctuations? 3. Discuss the difficulties of initially estimating the negotiated exchange value in the merger of a volatile, highly growth oriented firm with a stable, moderate growth firm? 4. In this merger only stock was exchanged. Under the purchase method of accounting for business combinations, goodwill must be recognized and amortized. What are the implications for earnings of the merger?