a)Some of the most colorful language of finance comes from defensive tactics used in mergers and acquisitions transactions. Poison pills, golden parachutes, crown jewels, white knight, and greenmail are terms that describe various antitakeover tactics. Select three (3) of these antitakeover tactics and explain each of them.

b)How does asymmetric information affect the firm's capital structure decisions? How do the firm's financing actions give investors signals that reflect management's view of stock value?

c)How does the cost of debt, the cost of equity, and the weighted average cost of capital (WACC) behave as the firm's financial leverage increases from zero? Where is the optimal capital structure? What is its relationship to the firm's value at that point?