... CONTENTS IXMergers, Acquisitions, and Corporate Control 56722.1 The Market for Corporate Control 569Method 1: Proxy Contests 569Method 2: Mergers and Acquisitions ... 575Diversification 575The Bootstrap Game 57522.4 Evaluating Mergers 577Mergers Financed by Cash 577Mergers Financed by Stock 579A Warning 580Another Warning 58022.5 Merger Tactics 582Who ... 200,000 = $100,000.2Part of this increase can be financed byretained earnings, which are forecast to be $36,000. So the amount of external finance needed isRequired external financing = (sales/net...