Which of the following statements is FALSE?

a. In a typical LBO, shareholders do well but bondholders realize a decline in value.

b. A joint venture is when two or more firms partner up in order to own a third firm.

c. If the shareholders gain from a merger comes at the expense of other stakeholders, then this is called hubris

d. If the value of the combined firm is greater than the sum value of the individual firms, then we call this synergy

Which of the following statements is correct?

a. Merger defenses generally have the effect of protecting current management as opposed to helping shareholders

b. The smaller the synergistic benefits of a particular merger, the greater the incentive to bargain in negotiations, and the higher the probability that the merger will be completed.

c. Since mergers are frequently financed by debt more than equity, financial economies that imply a lower cost of debt or greater debt capacity are rarely a relevant rationale for mergers.

d. Greenmail is when a target firm seeks out a friendly firm to take them over instead of being bought out in a hostile takeover.