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Which of the following motives for mergers make economic sense? (a) Merging to achieve economies of scale. (b) Merging to reduce risk by diversification. (c)

Which of the following motives for mergers make economic sense?

(a) Merging to achieve economies of scale.
(b) Merging to reduce risk by diversification.
(c) Merging to redeploy cash generated by a firm with ample profits but limited growth opportunities.
(d) Merging to combine complementary resources.
(e) Merging just to increase earnings per share.

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