1. What is the difference between horizontal integration and vertical integration? How does antitrust policy affect the nature of mergers? (LO20-1) 2. What is synergy? What might cause this result? Is there a tendency for management to over- or underestimate the potential synergistic benefits of a merger? (LO20-1) 3. If a firm wishes to achieve immediate appreciation in earnings per share as a result of a merger, how can this be best accomplished in terms of exchange variables? What is a possible drawback to this approach in terms of long-range considerations? (LO20-3)