Merger Motives. Which of the following motives for mergers make economic sense? a. Merging to achieve economies

Question:

Merger Motives. Which of the following motives for mergers make economic sense?

a. Merging to achieve economies of scale.

b. Merging to reduce risk by diversification.

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

d. Merging to increase earnings per share.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Study Guide To Accompany Fundamentals Of Corporate Finance

ISBN: 9780073012421

5th Edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

Question Posted: