Q1 Which one of the following is an example of a poison pill?

	A.	A firm that distributes new shares to the existing shareholders at a discount in the event of a takeover.
	B.	A firm that pays all its cash as dividends to existing shareholders because it interests the acquirer.
	C.	A firm that sells its efficient business division because it interests the acquirer.
	D.	A firm that opens talks with another potential acquirer.

Q2 If the target and acquirer have initial values of $100 million and $150 million, respectively, and the combined firm is worth $400 million, then the synergy value is:

	A.	$400 million
	B.	$100 million
	C.	$150 million
	D.	$50 million