The Expression "Conglomerate Discount" Means

question 35

Multiple Choice

The expression "conglomerate discount" means:

• A)The ability of a widely diversified firm to exploit economies of scope to reduce its overall costs
• B)The willingness of stock exchanges to offer discounted listing fees in order to attract highly diversified firms
• C)The stock market tends to value diversified companies at less than their break-up value
• D)The lower rates of return that highly diversified companies offer to their shareholders.

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Definitions:

Sodium Chloride

Sodium chloride is a chemical compound also known as table salt, formed from the ionic bonding of sodium and chlorine atoms.

Organic Solvent

A liquid substance capable of dissolving other substances; usually organic compounds that are not water.

Hexane

A straight-chain alkane with six carbon atoms, typically used as a non-polar solvent in organic chemistry.

Net Molecular Dipole Moment

The overall measure of the molecular polarity, determined by the sum of all individual bond dipole moments within a molecule, taking into account their direction and magnitude.