Which One of the Following Best Defines Synergy Given the Following

question 28

Multiple Choice

Which one of the following best defines synergy given the following?
V_A = Value of firm A
V_B = Value of firm B
V_AB = Value of merged firm AB

• A)(V_A + V_B) - V_AB
• B)V_AB - (V_A + V_B)
• C)greater of 0 or (V_A + V_B) - V_AB
• D)greater of 0 or V_AB - (V_A + V_B)
• E)greater of 0 or V_AB

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Definitions:

Mortgage Note Payable

A long-term liability document that spells out the terms under which a borrower agrees to repay a sum of money to a lender, typically secured by real estate.

Loan Principal

The amount of money that is borrowed and must be repaid, excluding any interest or additional fees.

Corporate Bond Interest

The income investors receive as payment for lending money by purchasing bonds issued by a corporation.

Tax Purposes

Considerations or actions taken with regard to taxation, such as reporting income, deductions, and credits.