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Diversify revenue sources in anticipation

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Reference no: EM133074159

(a) Explain why the following are or are not good reasons for Pfizer to acquire Wyeth:

(i) To diversify revenue sources in anticipation of patent expiry

(ii) To gain entry into the biological medicine sector

(iii) To cut costs by exploiting synergies

(b) Find the WACC and the unlevered cost of capital for both Pfizer and Wyeth as stand-alone firms pre-merger.

Reference no: EM133074159

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