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Digitalx Ltd is an information technology company. This company decided to acquire Adherium Ltd (a health care company) and Prodigy Gold Ltd (a gold exploration

Digitalx Ltd is an information technology company. This company decided to acquire Adherium Ltd (a health care company) and Prodigy Gold Ltd (a gold exploration company ). Both of the companies acquired have a high cost of capital. Discuss the potential effect on the value of Digitalx Ltd of its decision to acquire these companies.

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