Question: Search 0 'inal maining: 0 - 5 0 : 1 3 MC . 2 2 . 0 2 8 Submat Fert for Grad Question 1
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Submat Fert for Grad
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Which of the following statements is most CORRECT?
a The basic rationale for any foncal merger is synergy and, thus, the estimation of preforma cauh fows is the single most important part of the analys.
b The primary rationale for most seetating mergers is syeergy.
c The acquinc frms required rate of return in most poritonal mergers will not be affected, because the firms will have similar betas.
d In mout mergers, the benefits of synergy and the premiam the acquirer pays over the market price are summed and then divided equally befineen the shareholders of the acquiring and target firms.
Financial theory says that the choice of how to pay for a merger is realy irrelevant because, although it may affect the firm's capical structure, it will not allect its overall required rate of return.
Lisen
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