Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 1, Problem 13P
Summary Introduction
To Determine: To respond to the given statement
Introduction:
A hostile takeover is the most unmistakable element that separates corporations from different types of firms, which is the partition of proprietorship and administration. As a result of this, the supervisor goes about as a specialist between the Board of Directors and the investors, working in light of a legitimate concern for the investors.
Suppose the investors are not content with the implementation, they can pressurize the Board to change the director or the chief executive officer.
Statement: Are hostile takeovers necessarily bad for a company or their investors?
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Chapter 1 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 1.1 - Prob. 1CCCh. 1.1 - Prob. 2CCCh. 1.2 - Prob. 1CCCh. 1.2 - Prob. 2CCCh. 1.3 - What are the important changes that have occurred...Ch. 1.3 - What is the limit order book?Ch. 1.3 - Prob. 3CCCh. 1 - Prob. 1PCh. 1 - What does the phrase limited liability mean in a...Ch. 1 - Prob. 3P
Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - You are a shareholder in a C corporation. The...Ch. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Describe the important changes that have occurred...Ch. 1 - Prob. 16PCh. 1 - Explain how the bid-ask spread is determined in...Ch. 1 - Prob. 18PCh. 1 - Suppose the following orders are received by an...
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- How is liquidity both beneficial and harmful to a firm?arrow_forwardCan the goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?arrow_forwardIt is generally argued that the takeover constraint : Deters management from engaging in opportunistic behavior. Deters management from considering acquiring other companies. Deters management from declaring dividends. Deters management from increasing a firm’s level of borrowing.arrow_forward
- It is generally argued that the takeover constraint deters management from engaging in opportunistic behavior.deters management from considering acquiring other companies.deters management from declaring dividends.deters management from increasing a firm’s level of borrowing.arrow_forwardhow a firm might use a hedging to reduce risk in its business? please include examplesarrow_forwardwhat happens if a company doesn't manage risk ?arrow_forward
- What does it mean to “manage” risk? Should itsstockholders want a firm to “manage” all of therisks it faces?arrow_forwardWhy does business risk vary from industry to industry?arrow_forwardWhat do you see as some of the possible problems if shareholder value is seen as a strategy (and not an outcome)?arrow_forward
- What are the possible actions that a firm can take if it experiences a financial failure?arrow_forwardWhich of the following is true regarding IPO pricing? Answers: Underpricing is more popular which hurts the firm Underpricing is more popular which hurts the investment bank Overpricing is more popular which hurts the firm Overpricing is more popular which hurts the investment bankarrow_forwardhow does the existence market for corporate control affect firm performance?arrow_forward
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