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Which of the following is not a good reason to offer for an acquisition? a. It will diversify the firm's business risk. b. It will

Which of the following is not a good reason to offer for an acquisition?

a. It will diversify the firm's business risk.

b. It will increase agency costs.

c. It will increase the firm's debt capacity.

d. It will decrease earnings per share.

e. It will provide diseconomies of scale.

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