Which of the following actions should be taken by managers to avoid takeover threats?
A)Managers should take action to maximize stock prices.
B)Managers should declare lower dividends.
C)Managers should let the stockholders make the capital structure decisions.
D)Managers should make decisions that decrease the firm's expected future cash flows.
E)Managers should ensure that high-quality goods and services are sold at the highest possible prices.

Question

Quizplus · Accepted Answer

By maximizing stock prices, managers can make the company more valuable and less attractive to potential acquirers, thereby reducing the threat of a takeover.

Which of the Following Actions Should Be Taken by Managers