Several reasons have been proposed to justify mergers. Among the more prominent are (1) tax considerations, (2)
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Several reasons have been proposed to justify mergers. Among the more prominent are (1) tax considerations, (2) risk reduction, (3) control, (4) purchase of assets at below-replacement cost, (5) synergy, and (6) globalization in general, which of the reasons are economically justifiable? Which are not? Which fit the situation at hand? Explain.
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The economically justifiable rationales for mergers are synergy and tax consequences Synergy occurs when the value of the combined firm exceeds the sum of the values of the firms taken separately if s...View the full answer
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Related Book For 
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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