Perhaps the best circumstance that would lead to gains for the shareholders of both the bidder and the target in a takeover is when a well-managed firm takes over a poorly managed firm
Thus, the greatest gains in those takeovers in which the bidder has a (i) Tobin's q ratio (is well managed) and the target has a (ii) q ratio (is poorly managed). Evidence supports this argument.
(i) (ii)
a. high low
b. low high
A
You might also like to view...
Data mining and data coding of a firm's database can help a firm develop more personalized marketing communications and marketing programs
Indicate whether the statement is true or false
Which of the following is a definition of the covariance between X and Y?
A. Correlation between X and Y times variance of X times variance of Y B. Variance of X times the variance of Y C. Correlation between X and Y divided by the product of the standard deviation of X and the standard deviation of Y D. Correlation between X and Y times standard deviation of X times standard deviation of Y