Greenmail is an offer by a company, threatened by takeover, to offer its stock at a reduced price to a third party.
Answer the following statement true (T) or false (F)
False
Greenmail is an effort by the target firm to prevent an impending takeover. When a hostile firm buys a large block of outstanding target company stock and the target company management feels that a tender offer is impending, they offer to buy the stock back from the hostile company at a higher price than the unfriendly company paid for it.
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The preemptive message strategy works best for a firm that is clearly the brand leader and is the dominant company in the industry
Indicate whether the statement is true or false
Which one of the following is not considered to be a cash equivalent?
a. Corporate commercial paper due in 90 days after purchase b. U.S. Treasury bills with an original maturity of six months c. A money market account with a stock brokerage firm d. A certificate of deposit with a term of 75 days when acquired
When computing a price variance, the quantity is held constant.
Answer the following statement true (T) or false (F)
Is high turnover good? Explain your response.
What will be an ideal response?