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Defensive Merger Tactics Are Designed to Thwart Unwanted Takeovers and Mergers.Do

question 19

Essay

Defensive merger tactics are designed to thwart unwanted takeovers and mergers.Do such activities work to the advantage of shareholders all of the time?
Are these types of activities ethical?
Who do you think benefits the most from these activities?


Definitions:

Consolidated Sales

The total sales revenue of a parent company and its subsidiaries, reported as one figure in the consolidated financial statements.

Normal Markup

The standard percentage added to the cost of goods to determine their selling price.

Consolidated Sales

The total sales of a parent company and its subsidiaries, after eliminating intercompany sales, reported in the consolidated financial statements.

Normal Markup

The standard amount or percentage added to the cost of a product to determine its selling price.

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