Which of the Following Statements Is Most CORRECT

question 26

Multiple Choice

Which of the following statements is most CORRECT?

• A) The smaller the synergistic benefits of a particular merger, the greater the scope for striking a bargain in negotiations, and the higher the probability that the merger will be completed.
• B) Since mergers are frequently financed by debt rather than equity, a lower cost of debt or a greater debt capacity are rarely relevant considerations when considering a merger.
• C) Managers who purchase other firms often assert that the new combined firm will enjoy benefits from diversification, including more stable earnings.However, since shareholders are free to diversify their own holdings, and at what's probably a lower cost, diversification benefits is generally not a valid motive for a publicly held firm.
• D) Operating economies are never a motive for mergers.
• E) Tax considerations often play a part in mergers.If one firm has excess cash, purchasing another firm exposes the purchasing firm to additional taxes.Thus, firms with excess cash rarely undertake mergers.

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Definitions:

Photogénie

A cinematic concept that suggests certain objects or faces are imbued with an essence that makes them particularly suited to filmic representation.

Depth of Field

In photography and cinematography, depth of field is a measure of the distance between the nearest and farthest objects in a scene that appear acceptably sharp in an image.

Persistence of Vision

A phenomenon where the human eye retains images for a split second longer than they actually appear, making discrete frames appear as continuous motion in film and animation.

Critical Flicker Fusion

The frequency at which an intermittent light stimulus appears to be completely steady to the average human observer.