1} 2} 3) 4} 5} 6) In a tender offer acquisition what does the "hold out" problem refer to? If a firm has a stock based insolvency in both book and market value terms would the shareholders push for Chapter '7 resulting in a settlement according to the APR? Why? Briey explain your reasoning. A permits shareholders, except for the acquirer, to purchase additional shares at a discount. This provides investors with instantaneous profits which also dilutes shares held by the acquiring company, making the takeover attempt more expensive and more difficult. A is an individual or company that acts as a savior of a company by acquiring the corporation on the verge of being taken over by a force deemed undesirable by company officials. Empirical evidence suggests that upon announcement of a new equity issue, current stock prices generally [fall or rise)? Why? Briey explain your reasoning. If a group other than management solicits the authority to vote shares to replace management, a is said to occur. Which of the following statements is true? Dividends paid to preferred shareholders are fixed in advance which is different from bond coupons. Omission of dividend payment to preferred shareholders constitute default. In the case of default common shareholders have priority in 1heir claim on rm'g assets over preferred shareholders. Preferred shareholders do not have the right to vote in directors' election even when the firm skips preferred dividend payments. Dividends paid to preferred shareholders are due before the common shareholders receive their dividends