Share Rights Plans

question 39

Multiple Choice

Share rights plans

• A)vary in detail but are all designed to increase the cost of the firm to an unfriendly acquirer.
• B)with flip-in provisions allow existing shareholders to purchase additional shares at market value without incurring any transaction costs.
• C)require any unfriendly acquirer to exchange two shares in the target firm for every one share in the merged firm.
• D)allow shareholders to purchase additional shares at below market value at a time chosen by the rights holder.
• E)grant stock dividends to their holders in addition to the normal cash dividends.

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Definitions:

Immediate Feedback

Prompt information given in response to an action, intended to reinforce learning or correct mistakes.

Operant Conditioning

Operant conditioning is a learning process in psychology where behaviors are influenced by the consequences that follow them, like rewards or punishments.

Primary Reinforcers

Innate reinforcing stimuli that satisfy basic biological needs, such as food or water.

Delayed Reinforcement

A principle in behavioral psychology where a reward or punishment is given after a time delay, affecting how behaviors are learned or extinguished.