Please correct answer and don't use hand raiting Explain why increased regulatory capital requirements lead to a greater consolidation ofbanking firms via mergers and acquisitions.

Increased regulatory capital requirements encourage bank consolidation through mergers and…

Answered: Explain why increased regulatory…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 10MC

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Similar questions

Discuss the validity of risk diversification as a motivation for companies engaging in merger and acquisition activity?
Explain why firms undertake acquisitions.
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Which of the following characteristics are not an advantage of being a publicly traded company? Group of answer choices A. Allows the firm to play the merger game, using marketable securities for the purchase of other firms. B. Prestige is helpful in bank negotiations, executive recruitment and the marketing of products. C. Tapping into the security markets for a greater amount of funds. D. Compliance costs because of various public disclosure requirements.

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Explain why increased regulatory capital requirements lead to a greater consolidation of banking firms via mergers and acquisitions.