Which of the following are legal and acceptable reasons for the high level of merger activity in the U.S. during the 1980s?

1.

c.	Purchase of assets below their replacement costs.

2.

A profitable firm acquires a firm with large accumulated tax losses that may be carried forward.

3.

e.	Synergistic benefits arising from mergers.

4.

d.	Reduction in competition resulting from mergers.

5.

b.	Attempts to stabilize earnings by diversifying.