White Knights

question 63

Multiple Choice

White knights

• A) advise companies on ways to avoid being taken over.
• B) offer a higher purchase price and "friendlier offer" in the event of an unsolicited and unfriendly takeover attempt.
• C) attempt to make money in the stock market on stocks that are likely merger candidates.
• D) buy depressed stock of quality companies when merger talks are discontinued.

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Definitions:

Average Invested Capital

The average amount of money invested in a company over a certain period, used to evaluate the company's financial performance.

Investment Turnover

An indicator of how effectively an organization is using its invested capital to produce income.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated, expressed as a percentage.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.