The Big Firm has acquired The Small Firm. For The Big Firm, achieving diversification...

...means that the newly created firm's cash flow uncertainty drops, which can happen when the Firm is levered or unlevered [ Select ] ["TRUE", "FALSE"]

...will reduce the risk of the cash flows to bondholders, but not the risk of the cash flows to stockholders [ Select ] ["TRUE", "FALSE"]

...means that the newly created firm is risk-free [ Select ] ["TRUE", "FALSE"]

...will automatically result in increased cash flow earned by the newly created firm compared to the total of the two original firms' cash flows [ Select ] ["TRUE", "FALSE"]

...may happen without any synergy effects [ Select ] ["TRUE", "FALSE"]