Characteristic of an efficient market, Corporate Finance

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Question 1:

(a) Explain and comment on the various rationales presented to support the combination of two companies in a merger or takeover.

(b) What are two theoretical reasons why divestitures might create wealth? 

Question 2:

(a) Explain and discuss the implications of the Efficient Markets Hypothesis for the financial management of quoted companies.

(b) Explain why a characteristic of an efficient market is that markets have zero net present values.


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