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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:

Net Income

Net income is the total earnings of a company after all expenses and taxes have been subtracted from revenues, representing the profit during a specific period.

Depreciation

Allocation of the cost of an asset over its useful life, recognizing the reduction in value due to wear and use.

Bid Price

The price at which a buyer is willing to purchase a security, currency, or commodity.

Discount Rate

It’s the interest rate applied for determining the current value of cash flows expected in the future through discounted cash flow analysis.

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