Which of the following is a benefit of merging two companies who both have optimal debt levels?Multiple choice question.a smaller tax shieldan increase in risklower debt capacityrisk reduction

Which of the following contributes to increasing debt capacity after a merger?Multiple select question.the target firm has a low debt levelrisk-averse managementthe target firm has a high debt levela merger can decrease the debt risk level

Which of the following is an advantage of merger?Question 8Select one:a.Economies of scaleb.Finance advantagesc.Business diversificationd.a,be.all of the above

The most widespread reason for mergers is probably Blank______.Multiple choice question.the benefits received in combining complementary resourcestaxationunused tax creditseconomies of scale

The interest tax shield is a reason why:Group of answer choicescompanies tend to minimise their borrowingthe net cost of debt to a company is generally less than the cost of equitythe overall value of an unlevered company is equal to the value of a levered firmthe cost of debt is equal to the cost of equity for a company with a debt-to-equity ratio of less than 1companies tend to prefer equity financing over debt financing PreviousNext

Which of the following is not a direct source of value in a merger?a. Tax synergyb. Better investment policyc. Diversification synergyd. Growth synergy