Which of These Makes the Following a True Statement? Diversification

question 11

Multiple Choice

Which of these makes the following a true statement? Diversification resulting from a merger can:

• A)make the debt of the merged firm more risky, thus lowering the cost of capital.
• B)make the debt of the merged firm less risky, thus lowering the cost of capital.
• C)make the debt of the merged firm less risky, thus raising the cost of capital.
• D)None of these make the statement true.

---

Definitions:

Network Operating Systems

Software that controls the operations of a network, enabling computers within the network to communicate and share resources.

Evaluate

The process of assessing or examining the quality, importance, amount, or value of something.

Office Needs

Refers to the equipment, supplies, and software required for the effective functioning of an office environment.

Tutorial

A small program included in a software package designed to give users an overall picture of the product and its functions.