Synergy Is Created in an Acquisition Only If the

question 6

Multiple Choice

Synergy is created in an acquisition only if the

• A)value of the combined firm exceeds the sum of the individual firm's separate values.
• B)acquisition is an all-cash transaction at the current market value of the target firm.
• C)acquisition increases revenues while also reducing cash costs.
• D)acquisition is a tax-free transaction.
• E)value of the shares exchanged equal the market value of the target firm's shares.

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Definitions:

Intestate

The state of dying without a will.

Surviving Spouse

A surviving spouse is the husband or wife left alive after the other has passed away.

Express Trusts

A type of trust explicitly created by a settlor, typically in writing, specifying the trust's terms, beneficiaries, and the trustee's duties.

Trust Instruments

Legal documents establishing a trust, specifying its terms, and the responsibilities of the trustees.