Which of the Following Best Describes a Merger with True

question 31

Multiple Choice

Which of the following best describes a merger with true synergies?

• A)In a merger with true synergies, the pre-merger value exceeds the sum of the separate companies' pre-merger values and the dollar cost of the firms' capital.
• B)In a merger with true synergies, the post-merger value exceeds the sum of the separate companies' pre-merger values
• C)In a merger with true synergies, the post-merger value exceeds the sum of the separate companies' pre-merger values plus a risk adjusted cash flow relative to the risk of the combined firm.
• D)In a merger with true synergies, the post-merger value is less than the sum of the separate companies' pre-merger values.

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Definitions:

Bilateral Symmetry

A body plan in which an organism can be divided into two identical halves along a single plane, typical of most animals, including humans.

Body Sides

Refers to the distinct regions or aspects of an organism's body, such as dorsal (back), ventral (belly), lateral (sides), anterior (front), and posterior (back).

Central Axis

The main or primary line around which a body or structure is organized or arranged.

Three-Layer Body Plan

The structural organization in animals that consists of three primary germ layers: ectoderm, mesoderm, and endoderm, which give rise to all tissues and organs of the organism.