is this statement true or false and justify answer using logic and concepts Mergers inspired by vertical integration motives are very rare nowadays, as transaction costs have decreased substantially since the second merger wave.
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is this statement true or false and justify answer using logic and concepts
Mergers inspired by vertical integration motives are very rare nowadays, as transaction costs have decreased substantially since the second merger wave.
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- Hello, could you please answer the following question in details. Thank you very much! Are the following statements true or false? Justify your answer. Mergers inspired by vertical integration motives are very rare nowadays, as transaction costs have decreased substantially since the second merger wave. “It is always advisable for a company to diversify its activities, in order to limit the risk of being too exposed to one activity”Why so many mergers fail to produce the expected synergistic gains?“Merger may be profitable but are they good for the economy?” Explain your answer towards this statement.
- If a firm wishes to achieve immediate appreciation in earnings per share as a result of a merger, how can this be best accomplished in terms of exchange variables? What is a possible drawback to this approach in terms of long-range considerations?Choose the correct. Which of the following does not represent a primary motivation for business combinations?a. Combinations are often a vehicle to accelerate growth and competitiveness.b. Cost savings can be achieved through elimination of duplicate facilities and staff.c. Synergies may be available through quick entry for new and existing products into markets.d. Larger firms are less likely to fail.Which of the following does not represent a primary motivation for business combinations?a. Combinations are often a vehicle to accelerate growth and competitiveness.b. Cost savings can be achieved through elimination of duplicate facilities and staff.c. Synergies may be available through quick entry for new and existing products into markets.d. Larger firms are less likely to fail.
- 58) Which of the following is an advantage of consolidation? a) Consolidation of administrative functions increases unit costs b) The smaller size of the network or system enables it to negotiate better terms from vendors c) Capital acquisition costs are reduced, and risk is spread across a larger number of units d) Management expertise is dividedDo mergers create value? If so, who profits from this value?True or false, and explain: It is risky to operate multinationally, so it is not always wise to expand globally.
- Economies of scale allows financial institutions to Select one: reduce asymmetric information problem reduce diversify. reduce moral hazard. None of the answers are correct reduce transactions costsIs merging better for a business than being acquired?Which if the following statements about the use of the EBITDA multiple is true? a. EBITDA is much more volatile than FCF over time and thus an unstable component of the multiple. b. EBITDA multiple provides a good valuation tool for businesses in which most of the value comes from existing assets. c. When identifying comparable firms for estimating EBTIDA multiples for a private company, it is typical to use firms from a variety of different industries. d. An EBITDA multiple will always generate the same Enterprise Value as a Price-to-Earnings multiple for the same firm. e. All of the above statements are true.
