Which of the Following Is True Regarding Breakup Fees

Multiple Choice

Which of the following is true regarding breakup fees?

A) They are sometimes characterized as liquidated damages.
B) The Securities and Exchange Commission prohibits the payment of breakup fees.
C) Breakup fees are typically 20 to 25 percent of the value of the deal.
D) They are sometimes characterized as liquidated damages, and breakup fees are typically 20 to 25 percent of the value of the deal.