Which of These May Be a Source of Synergy

question 45

Multiple Choice

Which of these may be a source of synergy?
I.Unused debt capacity
II.Economies of scale
III.Increase in overall revenue
IV.Unused net operating losses

• A)I and IV only
• B)II and III only
• C)II,III,and IV only
• D)I,II,and III only
• E)I,II,III,and IV

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Definitions:

Future Value

The value of an investment at a specific future date, considering compound interest or returns.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, expressed as a percentage of the principal loan amount.

Cash Flows

The movement of funds into and out of a business, project, or financial product, reflecting operational, investment, and financing activities.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.