Which of the following is NOT normally regarded as being a barrier to hostile takeovers?   a. Abnormally high executive compensation.     b. Targeted share repurchases.     c. Poison pills.     d. Shareholder rights provisions.     e. Restricted voting rights.

Q: Which one of the following forms of incentives is NOT based on absolute performance?       Stock…

A: Absolute Performance: Absolute performance, as the name suggests, is an assessment of performances…

Q: The minority stakeholders may exchange their P100 par value shares for P400 cash in case they do not…

A: When an acquiring business tries to take over a target company against the target company's…

Q: Which of the following correctly characterizes the risks in merger arbitrage? O A. The strategy is…

A: Merger arbitrage is the process where an investor trades in the stock of the companies involved in…

Q: Many firms have devised defenses that make it more difficult or costly for other firms to take them…

A: Agency problems is a situation when one party acts like an agent for another party (principal) and…

Q: It is quite often we observe some firms takeover target firms from a different industry. If…

A: Diversified acquisition means those acquisitions in which the company acquires the other company to…

Q: Do solve it as soon as possible    Identify which statement is not correct. In a takeover bid to…

A: When one company acquires another, it is known as an acquisition. If the boards of both the…

Q: a) What is a conglomerate merger and why are they more likely to be approved? b) Limit pricing is a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…

A: While taking business decisions, business ethics play an important role. Business ethics means right…

Q: It is an axiom that may be characterized by managers making decisions that conflict with the best…

A: Agency problem arises during the time of dissatisfaction or conflict of interest between the…

Q: What are the factors that determine whether the company should use cash acquisition or stock…

A: Cash Acquisition refers to the acquisition or proposal by one company to another company to buy…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: Are managers of firms with formidable takeover defenses more or less likely to act in the…

A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: e takeover strategy that can be made by an entity when there is a high chance that current holders…

A: Introduction An anti-takeover measure is any move that is initiated on a ceaseless or irregular…

Q: Which of the following is a disadvantage of share ownership?   Select one: a. Shares are liquid…

A: The capital of a company is divided into a definite number of units and each unit is called a share.…

Q: Describe briefly four factors which explain why shareholders of acquiring companies rarely benefit…

A:

Q: or

A: A hostile takeover is a sort of business purchase or merger that is carried out against the…

Q: Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial…

A: Corporations have double taxation problems: The given statement is true as the income id once…

Q: Which of the following is NOT normally regarded as being a good reason to establish an ESOP?   a. To…

A: In the given question we are given 5 options and we are required to choose the correct option which…

Q: Why might one company have to complete more due diligence than another in a merger? A. None of…

A: Due diligence under the process of merger allow the buyer for confirming the pertinent information…

Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…

A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…

Q: In the context of Initial Public Offerings (IPO),  what is the main drawback of the book-building…

A: Book building is the process by which an underwriter attempts to determine the price at which an IPO…

Q: Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio…

A: In general, small businesses will offer only one product or service. But as the expansion of…

Q: Which of the following situations would compel the management of a company to embark on a capital…

A: The share capital is the amount of capital raised by the company through the issue of shares.

Q: It is generally argued that the takeover constraint  deters management from engaging in…

A: The term takeover refers to the process of one company acquiring control in another company, and the…

Q: subject to ethical

A: Maximizing shareholder wealth is the single or top priority for a company has led to a number of…

Q: Which of the following are common takeover tactics?     a. Bear hugs b. Open market purchases c.…

A: Common takeover tactics The acquisition of a business by another business is referred to as a…

Q: Describe briefly some of the important contributing factors which explain why shareholders of…

A: Takeover refers to the transfer of ownership or establishment of control by acquiring more than…

Q: [S1] A proxy fight involves having shareholders looking for board members that will allow an…

A: A proxy fight is an activity through which certain activist shareholders try to tempt other…

Q: Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Corporate Ethics Is it unfair or unethical for corporations to create classes of stock with unequal…

A: The Company is allowed to Create a Number of Classes  of stock they want, it can have different…

Q: It is generally argued that the takeover constraint : Deters management from engaging in…

A: Takeover Constraint:-It is a risk of being taken over by another company, hence the company's…

Q: It is and to sell or buy shares of a company on the basis of information not available to the…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: The Reading states that in a takeover bid, management is permitted to take defensive action provided…

A: The question is related to the effects on the company in case of a takeover Bid.   Generally, the…

Q: Why do you think investor would want more than 50% large percentage control of a company as far as…

A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…

Q: Suggest some ways in which firms have tried to avoid being part of a target takeover.

A: Target takeover/ hostile takeover : The term "takeover" refers to a firm being purchased by another…