Which of these motives are financially justifiable

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Several factors have been proposed as providing motives for mergers, including (1) synergy, (2) availability of excess cash, (3) ability to purchase assets at less than replacement cost, (4) diversification, and (5) managers' personal incentives.
a. Which of these motives are financially justifiable? Which are not?
b. Which of these motives apply to the proposed acquisition?

Reference no: EM13271575

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