A corporate raider gains a controlling fraction of the shares of a poorly managed company and replaces the board of directors.How does the corporate raider hope to make a profit in this case?
A) by the sale of the assets held by the company that hold most of its value
B) by the rise in the value of the stock held by the raider when the new board of directors is judged to be superior to the ousted board of directors
C) by motivating the board of directors and other stakeholders in the company to make difficult short-term decisions that will increase the long-term viability of the company
D) by removing the employees' expectations of the continued poor performance of the company
E) by paying itself a large portion of the firm's cash flows
Correct Answer:
Verified
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