The justification for the benefits of diversification from mergers include all of the following EXCEPT:
A)liquidity enhancement
B)tax loss benefits
C)lower cost of debt or increased debt capacity
D)direct risk reduction

Question

Quizplus · Accepted Answer

Tax loss benefits are not a direct benefit of diversification from mergers. Liquidity enhancement, lower cost of debt or increased debt capacity, and direct risk reduction are all potential benefits of diversification through mergers.

The Justification for the Benefits of Diversification from Mergers Include