Answer:
d. defense tactics make the costs of a takeover lower.
Explanation:
There's a take over attempt when a company is faced with a hostile takeover attempt.
Defense can be either pre offer takeover or post offer takeover.
In pre offer takeover defense, companies put mechanisms in place to discourage takeover attempts.
Pre takeover defense mechanisms include:
1. Golden parachute: this benefits the managers of a company. It is an agreement where managers are compensated lucratively if they leave the company being targeted for a takeover when there's a change in corporate control.
2. Fair price amendments: this sets a bidding value floor for a target company. This makes the company more expensive
3. Staggered board : this is when its impossible to change all the members of boards of a company.
4. Poison pill
5. Poison put
Post take over defense mechanism usually are put in place after a takeover attempt. They include:
1. White knight defesne : The takeover firm invites another company to purchase it in place of the firm planning an hostile takeover. This can lead to bidding and counter bidding by the third firm and the firm planning the hostile take over. This can eventually leads to winners curse. This usually increases the cost of takeovers
2. Litigation
Not all take over defense tactics are usually effective. Generally, preoffer take over tactics are usually recommended.
Answer: The Owner’s Equity ending balance is $15,730.
Explanation: In order to calculate the ending owner’s equity you need to identify the capital, revenue and expense accounts.
The Owner’s Equity is $12,940 and withdrawals are $790.
Revenue (Fees Earned) is $9,250.
Expenses equal 2,500 + 1,960 + 775 + 250 + 185 = $5,670.
Now that we have identified the each of the three categories, we will use the owner’s equity equation.
Owner’s Equity = Capital - Drawing + Revenues - Expenses
Owner’s Equity = $12,940 - 790 + 9,250 - 5,670
Owner’s Equity = $15,730
The correct answer for this question is this one: "Bank." <span>The SEC that most likely to penalize for violating a regulation is the bank. The SEC has the responsibility to penalize for any violations that has been committed - most especially those of related with banks.</span>
Answer: C. 150-250 basis points
Explanation:
Banks now charge between 150 to 250 basis points above the London Interbank Official Rate (LIBOR). This means that they charge a premium of between 1.5% to 2.5% over LIBOR for construction projects.
Like earlier mentioned, risks of construction lending may be less in a number of respects than those associated with land acquisition but however there are still risks. Risks such as low Tenancy when built, the potential Environmental problems and location.
This is why it is necessary to charge such a premium which is actually a very competitive rate amongst Banks.
If you need any clarification do comment.
