A Friendly Suitor That a Target Firm Turns to as an Alternative

question 21

Multiple Choice

A friendly suitor that a target firm turns to as an alternative to a hostile bidder is called a:

• A)golden suitor.
• B)poison put.
• C)white knight.
• D)shark repellent.
• E)crown jewel.

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Definitions:

Distributable Cash Flows

The amount of cash flow available to be distributed to security holders, often used in the context of REITs and master limited partnerships.

Cash Flow Assessment

The evaluation of how well a company generates cash to pay its debt obligations and fund its operating expenses.

Credit Risk

The risk that a borrower will default on any type of debt by failing to make required payments.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investing activities.