3. Merger motives (S32.2S32.3) Which of the following motives for mergers make economic sense? a. Merging to

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3. Merger motives (S32.2–S32.3) Which of the following motives for mergers make economic sense?

a. Merging to achieve economies of scale.

b. Merging to reduce risk by diversification.

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PROBLEM SETS 944 Part Eleven Mergers, Corporate Control, and Governance

c. Merging to redeploy cash generated by a firm with ample profits but limited growth opportunities.

d. Merging to combine complementary resources.

e. Merging to increase earnings per share.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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