Which of the following is not a potential benefit of a merger?
A) Improved financing posture.
B) Portfolio effect.
C) Dilution of earnings per share.
D) Tax loss carry-forward.

Question

Quizplus · Accepted Answer

Dilution of earnings per share is not a potential benefit of a merger. It refers to the decrease in earnings per share that can occur when additional shares are issued as part of the merger process, which can be a negative consequence for shareholders of the merging companies. Improved financing posture, portfolio effect, and tax loss carry-forward are all potential benefits of a merger that can lead to increased profitability and strategic advantage.

Which of the Following Is Not a Potential Benefit of a Merger