Which One of the Following Best Defines Synergy Given the Following

question 34

Multiple Choice

Which one of the following best defines synergy given the following? VA = Value of Firm A
VB = Value of Firm B
VAB = Value of merged Firm AB

• A) (VA + VB) − VAB
• B) VAB − (VA + VB)
• C) Max[(VA + VB) − VAB, 0]
• D) Max[VAB − (VA + VB, 0]
• E) Max[VAB − VB, 0]

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