All of the Following Statements Are True Except

question 13

Multiple Choice

All of the following statements are true except

• A) Poison pills discourage hostile takeovers.
• B) Poison pills discourage potential high takeover bids.
• C) Stockholders have to approve the acceptance of poison pill strategies before a corporation can use them.
• D) Many institutional investors are opposed to the poison pill.

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Definitions:

Fixed Assets Turnover Ratio

A financial metric that measures a company's ability to generate sales from its fixed assets, such as property, plant, and equipment.

EPS

Earnings Per Share, a financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity financing that maximizes a company's stock price while minimizing its cost of capital.

Earnings Per Share

A financial ratio indicating the amount of profit attributed to each outstanding share of common stock.