The Following Are Dubious Reasons for Mergers

question 62

Multiple Choice

The following are dubious reasons for mergers:
I. to diversify
II. increasing the earnings per share (EPS)
III. lower financing costs
IV. industry consolidation

• A) I only
• B) II and IV only
• C) III and IV only
• D) I, II, and III only

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Definitions:

Subjective Probability

Subjective Probability refers to the personal judgment or belief concerning the likelihood of an event occurring, which is not based on mathematical calculation but rather on intuition, experience, or belief.

Fair Coins

A term used to describe coins that have an equal probability of landing on heads or tails when flipped, exemplifying a truly random outcome.

Sample Space

The set of all possible outcomes in a statistical experiment.

Event

In probability and statistics, a set of outcomes of an experiment to which a probability is assigned.