A company might pay more for a set of assets than the total of their apparent values

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A company might pay more for a set of assets than the total of their apparent values as individual units because:

(a) It expects future profits.

(b) It believes that it is buying unidentified intangible assets such as customer loyalty.

(c) It has a management team that is very keen on expansion and is prepared to pay too much.

(d) Any of the above.

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