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9 9 Review Later You are a financial analyst at Company A. Your company is looking to acquire Company B. You have been tasked to

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9 9 Review Later You are a financial analyst at Company A. Your company is looking to acquire Company B. You have been tasked to evaluate their financial performance and you notice the following Sales have declined for the last five years by roughly 1.5% each year Operating expenses have also been increasing by 2.1% each year in the same time period COGS as a percentage of revenue has stayed the same You want to recommend to the director that your company should not look to acquire Company B. Which of the following statements is best for making this recommendation? . Company should not be acquired by our company. For the past five years, their financial performance has not been performing well. Acquiring them would not be well-advised. Company B is not an investment opportunity that would bring positive returns as shown by their persistent sales declines of 1.5% and continuous operating expense increases of 2.1% every year for the past five years. Our company should avoid acquiring Company B. Their financial performance has been declining for the past five years. We can achieve better returns without acquiring them Due to the trend of declining financial performance, Investing in Company B is an inefficient method for our capital to be spent. This is not the correct way our capital should be allocated

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