Asked by Alexis Henderson on Jul 11, 2024

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Verified

The value of synergy can be estimated by which of the following equations?

A) VAB - VA - VB
B) VAB - VB - taxes
C) VA - VB - costs
D) VA + VB - revenues

Value of Synergy

The additional value created by combining two companies or entities, where the performance and financial results of the merged entity are greater than the sum of the separate individual parts.

Equations

Mathematical statements expressing the equivalence between two expressions, containing one or more variables.

  • Familiarize oneself with the assessment of synergy value in mergers and acquisitions, including understanding the tax repercussions.
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Verified Answer

M?
Muhittin ?ekerda?Jul 16, 2024
Final Answer :
A
Explanation :
The correct equation for estimating the value of synergy is A) VAB - VA - VB. This equation calculates the combined value of two entities (A and B) together (AB) minus their individual values before the synergy (A and B), effectively capturing the additional value created by the synergy.