It is possible to merge with a company so that the merger results in the same earnings per share but still lowers the new firm's cost of capital.

Question

Quizplus · Accepted Answer

This is possible through a strategic merger that creates efficiencies and synergies, which can lead to a lower cost of capital. This would allow the new firm to have the same earnings per share but at a lower cost of capital, leading to higher profits for shareholders.

It Is Possible to Merge with a Company So That