____________ synergy refers to increase in the value of the firm that occurs to the combined firm from financial factors.

Related MCQs

• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• What is the value of the tax shield if the value of the firm is $5 million, its value if unlevered would be $4.78 million, and the present value of bankruptcy and agency costs is $360,000?
• A firm has EBIT of . 50,000. Market value of debt is . 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is:
• The net present value is expressed in financial value, where as internal rate of return(IRR) is expressed in ---------------
• A firm is said to be financially unlevered firm if the firm has ……….
• Which of the following argues that the value of levered firm is higher than that of the unlevered firm?
• Overall cost of capital, according to ------ approach, decreases up to a certain point, remains unchanged for moderate increase in debt thereafter, and increase beyond a certain point
• Acccording to the traditional approach what is the effect of increase in degree of leverage on the valuation of the firm
• An increase in the firm's receivable turnover ratio means that:
• Combined Leverage is obtained from OL and FL by their: