In an __________, the Target Survives the Transaction and May

question 31

Multiple Choice

In an __________, the target survives the transaction and may choose to either continue operations or dissolve after distributing the proceeds from the sale to its equity holders.

• A)Asset sale
• B)Stock sale
• C)Fire sale
• D)None of the above

---

Definitions:

Stock Prices

The current market price of a company's shares, representing the valuation that the market assigns to a single share of the company's stock.

Dividend Policy

A company’s strategy or guidelines set for allocating a portion of its earnings back to its shareholders in the form of dividends.

Automatic Reinvestment

A plan that allows investors to automatically reinvest dividends or capital gains back into the security that generated them.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.