A merger that allows a firm to access a cheaper way of financing its projects is an example of:
A)Financial economies of scope
B)Financial economies of scale
C)Financing synergy
D)Tax benefits

Question

Quizplus · Accepted Answer

Financing synergy occurs when a merger allows a firm to access a cheaper way of financing its projects, often due to the combined entity having a stronger financial profile or greater assets, which can lead to lower interest rates or better terms on borrowed funds.

A Merger That Allows a Firm to Access a Cheaper