1. Explain why synergy might exist when one company merges with or takes over another company.
2. Apart from company acquisition what other types of synergy are there?
3. Briefly explain the following three methods Purchasing Power Parity, Interest Rate Parity and International Fisher Effect that could be used by to forecast future exchange rates and discuss the limitation of the forecast a global holding company would need needs to be aware off.
4. Define WACC and its effect to a company's capital structure