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Ken Garrett.
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Vipin
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kaplan text says that the advantages of diversification
increased flexibility
better access to capital marketsit actually lists 6 of them but I don’t understand the above 2 points.
how it increases flexibility?
how it enables better access to capital markets?thanks
Ken Garrett
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Not sure about flexibility – except that the company might have more products.
Capital markets might view the risk in the group as being diversified so will reduce the cost of finance.
Vipin
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