A financial merger is undertaken to increase
A. operating efficiency, which is used to increase cash flows.
B. cash flows, which are used to increase dividends to shareholders.
C. market share, which is used to maximize shareholder wealth.
D. cash flows, which are used to service the debt typically incurred to finance the merger transaction.
Answer:D
A financial merger is undertaken to increase
A. operating efficiency, which is used to increase cash flows. B. cash flows, which are used to increase dividends to shareholders. C. market share, which is used to maximize shareholder wealth. D. cash flows, which are used to service the debt typically incurred to finance the merger transaction.