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Determine about the synergistic effect
When two or more companies join together there must be a synergistic effect. Synergy is when 2 + 2 = 5. Net present value of the two companies combined is greater than individual NPVs. This means gains to shareholders are more with integration instead of separate. Combine results are better, than the results as if companies were operating separately.
in 2002, jackson incorporated had gross sales of $4269200. for 2002, management estimated that returns and allowances would be 5 percent of gross sales. what did jackson report as
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