Verizon acquired T-Mobile. The two firms are levered. No synergy is generated as a result...
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Verizon acquired T-Mobile. The two firms are levered. No synergy is generated as a result of this merger. In this case: Multiple Choice the creditors of the two companies would probably benefit at the expense of the companies' stockholders. O Verizon's stockholders would neither gain nor lose. one would observe the "diversification effect" which would benefit T-Mobile's stockholders. neither gains nor losses would be realized by Verizon's and T-Mobile's stock- and bond-holders. stockholders from both Verizon and T-Mobile would gain the same amount that would be lost by the creditors from both companies
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