In defending against a hostile takeover, the strategy involving the payment of a large, debt-financed, cash dividend is the ________ strategy.

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The strategy involving the payment of a large, debt-financed, cash dividend is known as a leveraged recapitalization. This tactic increases the company's debt level and reduces shareholder equity in an attempt to make the company less attractive to a potential acquirer, while using the cash dividend to provide a payout to shareholders. Shark repellent refers to tactics that a company can use to make itself less attractive to a potential acquirer, such as implementing poison pills or staggered boards. Golden parachutes refer to an executive compensation strategy in which executives receive large payouts if the company is acquired. A white knight is a company that comes in to acquire the target company to prevent a hostile takeover.

In Defending Against a Hostile Takeover, the Strategy Involving the Payment