BUSI 536 Quiz Hostile Takeovers

BUSI 536 Quiz Hostile Takeovers

BUSI 536 Quiz: Hostile Takeovers & LBOs

Covers the Textbook material from Module 4: Week 4.

1. Morck, Shleifer, and Vishny found that with higher share ownership by management there tends to be:
2. Poison pill adoptions have:
3. The case involving this company established the legality of poison pills in the United States:
4. Goldsmith was able to circumvent this particular Crown-Zellerbach defense by:
5. The use of greenmail has:
6. Research has shown that shareholders in companies that become white knights experience increased shareholder wealth.
7. The Georgeson studies showed that pill-protected companies had reduced shareholder values.
8. The research of Bebchuk and Cohen found a negative relationship between firm value, as measured by Tobin’s q, and the implementation of a staggered board.
9. Masulis, Wang, and Xie found that the greater the divergence between insider voting rights and cash flow rights, the more likely shareholder wealth will increase.
10. Back-end plans are also referred to as note purchase rights plans.
11. Bris found that toeholds were used in what percent of the tender offers he examined?
12. Research shows that bypass offers tend to have:
13. Sridharan and Reinganum found out what about the factors which determine the selection of a proxy fight instead of a tender offer by a bidder:
14. Listokin found that dissidents’ victories in proxy contests did what over his study period in the 2000s:
15. Which of the following professionals are often members of a bidder’s tender offer team?
16. Toeholds are usually established in the vast majority of tender offers.
17. Betton and Eckbo found out that toeholds are associated with higher tender offer premiums.
18. In the United States two-tiered tender offers are not that common any more.
19. The tender offer was first introduced in the Inco–ESB takeover battle.
20. The target will generally pay the insurgent’s costs of a proxy fight even if the fight is not successful.
21. Which of the following is a potent defense against activist hedge funds?
22. Which of the following are examples of factors that facilitated the growth of activist hedge funds over the years 2012–2018?
23. Which of the following is true?
24. Which of the following is not an example of an activist hedge funds?
25. Which of the following may be a valid criticism of activist hedge funds?
26. Research, such as the work of Greenwood and Schoar, found that financial performance of companies improve after activists establish stock positions in the ]rms.
27. Activists acquire stock positions with intent to make changes in the company which will increase the stock price and give them a profit.
28. There is research which supports the view that investments in activist funds tend to outperform nonactivist hedge fund investments.
29. Research, such as the work of Clifford, has established that when activists establish share position in target shareholder wealth declines.
30. Research, such as the work of Huang, found that companies which had activists in their shareholder base tended to receive higher takeover premiums when they are sold.
31. In Revlon v. McAndrews and Forbes Holdings, the court held:
32. In his study of buyouts in the 1980s, Kaplan found post-buyout CEO ownership percentages:
33. Vertical strips:
34. Which of the following is true of senior debt?
35. Research by Cao and data from Mergerstat showed that:
36. Harris, Siegel, and Wright found productivity improvements for European companies that underwent an MBO.
37. A study by Travlos and Cornett shows a statistically significant negative correlation between abnormal returns to shareholders and the P/E ratio of the firm relative to the industry.
38. Unsecured debt is sometimes also called subordinate debt.
39. Research by Cao and data from Mergerstat showed that LBO premiums were less than M&A premiums.
40. Kaplan found that the post-buyout investors did not enjoy the tax-related benefits of LBOs.