Which of the following statements best describes mergers?
A) The high Canadian dollar relative to foreign currencies makes Canadian companies comparatively inexpensive to foreign buyers, spurring many mergers.
B) The expansion of the junk bond market makes debt more freely available for large acquisitions and LBOs, resulting in an increased level of merger activity.
C) Increased nationalization of business and a desire to scale down and focus on producing in one's home country may virtually halt international mergers.

Question

Quizplus · Accepted Answer

The expansion of the junk bond market makes debt more freely available for large acquisitions and LBOs, resulting in an increased level of merger activity. This statement implies that mergers are driven by the availability of funding, specifically through the junk bond market.

Which of the Following Statements Best Describes Mergers