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Question 1

Which of the following are usually considered active antitakeover

measures?

Greenmail

Poison pills

Corporate charter amendments

All the above

Question 2

Which of the following activities are commonly associated with takeovers?

I. The acquisition of assets

II. Proxy contests

III. Management buyouts

IV. Leveraged buyouts

I and III only

II and IV only

I, III, and IV only

I, II, III, and IV

Question 3

A financial device designed to make unfriendly takeover attempts unappealing, if not impossible, is called:

Golden parachute

Standstill agreement

Greenmail

Poison pill

Question 4

Which one of the following defensive tactics is designed to prevent a "two-tier"

takeover offer?

Poison put

Shark repellent

Dual class capitalization

Fair price provision

Question 5

A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a:

Supermajority amendment

Standstill agreement

Greenmail provision

Poison pill amendment

Question 6

Morck, Shleifer, and Vishny found that with higher share ownership by management there tends to be:

More antitakeover defense

Higher Tobin q's

Lower shareholder values

None of the above

uestion 7

A contract wherein the bidding firm agrees to limit its holdings in the target firm is called a:

Supermajority amendment

Standstill agreement

greenmail provision

poison pill amendment

Question 8

Which of the following statements about the Pac-Man defense is not true?

Has found a new resurgence

Was done in the Bendix-Martin Marietta battle

Is not common today

None of the above

uestion 9

The primary purpose of a flip-in provision is to:

increase the number of shares outstanding while also increasing the value per share.

dilute a corporate raider's ownership position.

reduce the market value of each share of stock.

give the existing corporate directors the sole right to remove a poison pill.

Question 10

Corporate charter provisions allowing existing stockholders to purchase stock at some fixed price in the event of a hostile outside takeover attempt are called:

Pac-man defenses

Golden parachute provisions

Greenmail provisions

Share rights plans

Top Answer

Question 1 Greenmail Question 2 I, II, III, and IV Question 3 Poison Pill Question 4 Fair Price... View the full answer

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