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If a Firm Issues a Poison Pill When Facing a Hostile

Question 94

Multiple Choice

If a firm issues a poison pill when facing a hostile takeover attempt,it:


A) fires its board of directors for incompetence.
B) allows stockholders to buy shares of stock at prices lower than the market value.
C) involves the firing of the entire executive committee before a takeover.
D) requires a majority of stockholders to approve the takeover.
E) files a lawsuit to avoid the takeover.

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