Corporate Finance
Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
Question
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Chapter 1, Problem 13P
Summary Introduction

To Determine: To respond to the given statement

Introduction:

A hostile takeover is the most unmistakable element that separates corporations from different types of firms, which is the partition of proprietorship and administration. As a result of this, the supervisor goes about as a specialist between the Board of Directors and the investors, working in light of a legitimate concern for the investors.

Suppose the investors are not content with the implementation, they can pressurize the Board to change the director or the chief executive officer.

Statement: Are hostile takeovers necessarily bad for a company or their investors?

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