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When Mergers and Acquisitions Are Undertaken in Pursuit of Synergy

Question 30

Multiple Choice

When mergers and acquisitions are undertaken in pursuit of synergy which of the following relationships describes the beliefs that guide managers. Let A and B represent the firms involved.


A) value of A and B merged > value of A + value of B if the firms remain separate
B) value of A and B merged = value of A + value of B if the firms remain separate
C) value of A and B merged < value of A + value of B if the firms remain separate
D) value of A minus B > value of A + value of B if the firms remain separate

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