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jeyben [28]
3 years ago
10

Which of the following statements is CORRECT? a. Well-designed bond covenants are useful for reducing potential conflicts betwee

n stockholders and managers. b. Takeovers are most likely to be attempted if the target firm's stock price is above its intrinsic value. c. The bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail. d. Stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value. e. The efficiency of the U.S. economy would probably be increased if hostile takeovers were absolutely forbidden.
Business
1 answer:
ad-work [718]3 years ago
6 0

The answer is: c. The bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail

Hostile takeover refers to the process of acquiring another company without the approval of that other company's management team. The only way to do a hostile takeover is to ensure majority of the shareholders to sell their stocks to us within a short period of time. For the shareholders to do this, we need to offer the price that is way above the current market value.


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<u>Answer:</u>

<em>The level of compliance to nonprofit status regulations.</em>

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4 0
3 years ago
Read 2 more answers
Atlanta Company Spokane Company
liraira [26]

Answer:

C) Atlanta Company

Explanation:

Let's bear in mind that equity is an advantage that allows your company to buy and sell more.

So more equity means more ability to buy and sell and less the possibility of going bankrupt.

Liability on the other hand also gives advantage in trade r company , so more liability shows strongness of the company.

Now let's compare the equity and liability of the both companies

Atlanta Company

Total liabilities $ 429,000

Total equity 572,000

Spokane Company

Total liabilities $ 549,000

Total equity 1,830,000

The equity ratio is about 1:3

While liability is about 1:1.2

So Atlanta company has more riskier structure

5 0
3 years ago
The following transactions occurred during November: Borrowed $2,700 from the bank in and signed a promissory note. Received $52
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Answer: $5,000

Explanation:

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Revenue to be recorded in November income statement = Billed $3,950 to customers for services performed on account in November + Received $1,050 cash for services performed during November

= 3,950 + 1,050

= $5,000

6 0
3 years ago
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