Question
2. International corporate control Suppose that an MNC is seeking to make an international acquisition. The current market value of the target is $100 million.
2. International corporate control
Suppose that an MNC is seeking to make an international acquisition. The current market value of the target is $100 million. If the management and board of directors at the target require at least a 40.00% premium on the current value, the MNC will need to pay at least $ _____ million to acquire the target. In response to this acquisition, the stock price of the target will most likely _______ (Increase/Decrease) in the short term. Suppose that a target offers additional stock to existing shareholders in the event of a takeover. This most closely resembles an example of a ______ (host government barrier / anti-takeover amendment / poison pill)
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