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Which of the following is not true of financial synergy? a. Tends to reduce the firms cost of capital b. Tends to increase the debt

Which of the following is not true of financial synergy?

a.

Tends to reduce the firms cost of capital

b.

Tends to increase the debt capacity of the combined firm

c.

Allows big firms to experience lower average security underwriting costs than smaller firms

d.

Tends to spread the firms fixed expenses over increasing levels of production

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