Describe a horizontal merger and explain how it can create value forshareholders?(Select all of the choices below thatapply.)

A.

Horizontal mergers are more likely to create value for acquiring shareholders.

B.

Horizontal mergers combine two firms in the same industry.

C.

Horizontal mergers combine two firms in dissimilar industries.

D.

A horizontal merger provides for greater potential synergies in eliminating redundant functions within the two firms and potentially increased pricing power with both vendors and customers.