What Is the Main Lesson Learned from Investor Carl Icahn's

question 18

Multiple Choice

What is the main lesson learned from investor Carl Icahn's bid to purchase Clorox Co.?

• A) Boards will only defend against takeover attempts if their companies are performing poorly.
• B) The situation demonstrates two possibilities. First, Clorox was underperforming and the market for corporate control disciplined managers to improve performance. The second possibility was that investors sometimes take over companies that are performing well.
• C) Boards commonly make mistakes in rejecting takeover bids as shown in the case of Icahn's bid for Clorox Co.
• D) Clorox was clearly underperforming and Icahn's bid was a good example of the efficiency of the market for corporate control.

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Credit for the Elderly

A tax credit available to taxpayers aged 65 and older, aimed at reducing the tax liability for qualified individuals.

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A condition where an individual is unable to work and earn income due to a long-term injury or illness, often leading to eligibility for certain benefits.

Child Tax Credit

A tax benefit offered to taxpayers for each qualifying child, aimed at reducing the tax liability and potentially increasing the tax refund.

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