The Justification for the Benefits of Diversification from Mergers Include

question 28

Multiple Choice

The justification for the benefits of diversification from mergers include all of the following,EXCEPT:

• A)tax loss benefits.
• B)lower cost of debt or increased debt capacity.
• C)direct risk reduction.
• D)liquidity enhancement.

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Definitions:

Actual Delivery

In finance, refers to the physical delivery of a financial instrument or commodity as opposed to a settlement made in cash or another financial arrangement.

Long Corn Futures

An investment position that speculates on the future price increase of corn by purchasing corn futures contracts.

Delivery Date

The specific date on which a financial transaction or agreement is scheduled to be concluded.

Maintenance-Margin

The minimum amount of equity that must be maintained in a margin account to continue holding positions, preventing a margin call.