Which of the following can be expected to create value immediately? I. Reducing

Question

Which of the following can be expected to create value immediately?

I. Reducing operating and/or financing costs
II. Research and development leading to a patent
III. Building a brand name

Select one:

A. I only

B. I and II only

C. I and III only

D. II and III only

E. I, II, and III

F. None of the above

Oil Corp. is considering the acquisition of Toledo Fuels, Inc. Both firms are in the same industry. The management team of Almont Oil is outperforming its peer group, while the management team of Toledo Fuels is underperforming its peer group. Which of the following is likely to be true?

I. The shareholders of Almont Oil may view the acquisition unfavorably
II. The shareholders of Toledo Fuels will likely view the acquisition favorably
III. The key issue in this merger is likely to be financial synergy

Select one:

A. I only

B. II only

C. I and II only

D. I and III only

E. II and III only

F. I, II, and III

Explanation / Answer

And 1 option A

Reducing operating and financial cost will add value immediately. As rest two will take time and add value later on when they ends.

Ans 2 option C

3rd statement is false because it's not a financial synergy , it's a operational synergy

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