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A Firm May Decide to Eliminate the Threat of a Takeover

Question 96

Multiple Choice

A firm may decide to eliminate the threat of a takeover by a major shareholder by purchasing shares from him at a premium also known as a(n) :


A) open market purchase.
B) tender offer.
C) targeted repurchase.
D) greenmail.
E) Dutch auction.

Correct Answer:

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