In Some Studies,it Has Been Found That a Target Company's

question 23

Multiple Choice

In some studies,it has been found that a target company's shareholders have gained even where a takeover bid has been unsuccessful.A likely reason for this is that:

• A)the bid prompted a change in the target company's investment strategy.
• B)the market may expect another bid for the target company.
• C)gains to target shareholders result from the market's reassessment of previously undervalued shares.
• D)the bid prompted a change in the target company's investment strategy and that the market may expect another bid for the target company.

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Definitions:

Dishonors

A term often related to financial instruments (like checks or promissory notes) that are not fulfilled as agreed upon, typically due to insufficient funds.

Collection Expected

This refers to the amount of money a business anticipates receiving from its customers who have purchased goods or services on credit.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Note Receivable

A written promise for amounts to be received by a creditor from a debtor, typically generating interest income for the holder.