Chicago Industries has a debt-equity ratio of 0.9. Its WACC is 8.5% and its cost of debt is 4.2%. The corporate tax rate is 21 percent. 2. (15) Please answer about hostile takeovers 1) What types of actions might the management of a firm take to fight a hostile acquisition bid from an unwanted suitor? 2) How do the target firm shareholders benefit from the defensive tactics of their management team? 3) How are the target firm shareholders harmed by such actions?