Test Your Knowledge - Mergers & Acquisitions

Which of the following is not true of financial synergy?

A. Tends to reduce the firm’s cost of capital.
B. Results from a better matching of investment opportunities available to the firm with internally generated funds.
C. Enables larger firms to experience lower average security underwriting costs than smaller firms.
D. Tends to spread the firm’s fixed expenses over increasing level of production.
E. A and B

Reveal Answer

D. Tends to spread the firm’s fixed expenses over increasing level of production.

What is the M&A Professional Certificate?

The M&A Professional Certificate is a comprehensive analysis of the major facets of the Mergers & Acquisitions industry and the skills engaged in executing all areas of transactions from pre to post-merger integration.