Which of the following are usually considered active antitakeover
Corporate charter amendments
All the above
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
A financial device designed to make unfriendly takeover attempts unappealing, if not impossible, is called:
Which one of the following defensive tactics is designed to prevent a "two-tier"
Dual class capitalization
Fair price provision
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:
Poison pill amendment
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
A contract wherein the bidding firm agrees to limit its holdings in the target firm is called a:
poison pill amendment
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
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.
Corporate charter provisions allowing existing stockholders to purchase stock at some fixed price in the event of a hostile outside takeover attempt are called:
Golden parachute provisions
Share rights plans
Question 1 Greenmail Question 2 I, II, III, and IV Question 3 Poison Pill Question 4 Fair Price... View the full answer