1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enot [183]
4 years ago
15

What is the difference between a horizontal merger and a vertical merger? A horizontal merger is a merger A. between firms of di

fferent sizes, while a vertical merger is a merger between firms of the same size. B. that would increase efficiency, while a vertical merger is a merger that would decrease efficiency. C. between firms in the same industry, while a vertical merger is a merger between firms at different stages of the production of a good. D. between firms that have market power, while a vertical merger is a merger between firms that are price takers. E. between firms in different industries, while a vertical merger is a merger between firms in the same industry. Which type of merger is more likely to increase the market power of a newly merged firm? __________ mergers are more likely to increase market power.
Business
1 answer:
Annette [7]4 years ago
5 0

Answer:

A) A horizontal merger is a merger between firms in the same industry while a vertical merger is a merger between firms at different stages of production of a good.

B) Horizontal mergers are more likely to increase the market power of the newly merged firm.

Explanation:

A) A horizontal merger is a type of merger which takes place between businesses that sell the same type of product. It can also be described as the coming together of two or more companies that manufacture similar products, this is done to reduce the amount of competition in the market, share different types of skills that can boost the amount of profit incurred, increase the rate of expansion.

A vertical merger is a merger that exists between two of more organisations that manufacture products which are not alike in any way. The main objective of this merger is to lower the cost of production.

B) Horizontal mergers have the tendency to increase the market power by causing a decline in the amount of companies that are competing for the same product in the market.

You might be interested in
A one-brand-name strategy should be adopted when the name cannot be pronounced in the local language, when the brand name is own
marishachu [46]

Answer:

False

Explanation:

A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and store value as brand equity for the object identified, to the benefit of the brand's customers, its owners and shareholders. Name brands are sometimes distinguished from generic or store brands.

4 0
3 years ago
Problem 16-12 Calculating WACC [LO1] Blitz Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of d
nignag [31]

Answer:

a) 13.18%

b) 9.06%

c-1) 14.55%

c.2) 11.805%

c.3) 9.06%

Explanation:

debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%

equity = 40%, Re = ?

WACC = 7.7%

7.7% = (40% x Re) + (60% x 4.05%)

7.7% = (40% x Re) + 2.43%

(40% x Re) = 5.27%

Re = 5.27% / 40% = 13.175 = 13.18%

13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)

13.18% = ReU + (ReU - 0.054) x 1.125

0.1318 = ReU + 1.125Reu - 0.06075

0.19255 = 2.125ReU

ReU = 0.19255 / 2.125 = 9.06%

ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75

ReL = 14.55%

ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75

ReL = 11.805%

6 0
4 years ago
National governments frequently borrow money to fund current expenditures how to find prior year debt
taurus [48]

National governments usually borrow money to fund their current expenditures as it to cover up their debts

4 0
3 years ago
What is sexual intercours and how it happens <br>​
Anastasy [175]

Answer:

YOU DO LE SECKS

Explanation:

6 0
3 years ago
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou
erik [133]

Answer:

$0.12 billion; a budget surplus

Explanation:

Given that,

Total spending for the last fiscal year = $4.71 billion

Tax collected during the same fiscal year = $4.83 billion

Government transfers = $0

Lilliput's budget balance:

= (Taxes - Government transfers) - Total spending of government

= ($4.83 billion - $0) - $4.71 billion

= $0.12 billion

Therefore, the Lilliput has a budget surplus during the last fiscal year because of the positive budget balance.

5 0
3 years ago
Other questions:
  • The upward-sloping part of the long-run average cost curve is explained by:
    6·1 answer
  • All employers in the U.S. Pay "payroll taxes" on behalf of employees. The Medicare portion of this is 1.45% of pay. If an employ
    9·2 answers
  • Which of the following statements is CORRECT? ​ Question 2 options: ​The slope of the SML is determined by the value of beta
    6·1 answer
  • Jawson Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department fo
    7·2 answers
  • Below are transactions related to Impala Company.
    15·1 answer
  • The Office Supplies account is Select one: a. an asset, and it has a normal credit balance. b. a revenue, and it has a normal cr
    6·1 answer
  • On January 1 of this year, Houston Company issued a bond with a face value of $18,000 and a coupon rate of 6 percent. The bond m
    11·1 answer
  • Good evening! Did you eat today? Did you drink water today? Did you get outside for some fresh air or even anytime to chill? Did
    5·2 answers
  • Mary Smith took a car loan of $25,000 to pay back in 48 monthly installments at an interest rate of 8%. Compute the loan balance
    12·1 answer
  • Steve is preparing a market analysis for the joneses and has selected three comparable properties. how many adjustments should s
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!