Asked by
Lauren Henke
on Oct 07, 2024
Verified
Which statement best describes mergers?
A) The high Canadian dollar relative to foreign currencies makes Canadian companies comparatively inexpensive to foreign buyers, spurring many mergers.
B) The expansion of the junk bond market makes debt more freely available for large acquisitions and LBOs, resulting in an increased level of merger activity.
C) Increased nationalization of business and a desire to scale down and focus on producing in one's home country may virtually halt international mergers.
D) A high Canadian dollar results in a high cost of commodities, which results in mergers being more expensive in Canada.
Junk Bond Market
A segment of the financial market that deals with high-risk, high-yield bonds issued by corporations with lower credit ratings.
International Mergers
The combination of companies from different countries into a single entity.
- Identify the differences in merger types, acquisition approaches, and their impact on finances.
Verified Answer
WD
Learning Objectives
- Identify the differences in merger types, acquisition approaches, and their impact on finances.