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9 January, 10:26

Auto Mart, a large auto parts distributor, is attempting to acquire Rubber Meets the Road, a tire manufacturer. However, Rubber Meets the Road does not want to be taken over, so it issues a poison pill to try to head off the hostile takeover attempt. What does this entail?

allowing stockholders to buy shares of stock at prices lower than the market value T/F

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Answers (2)
  1. 9 January, 10:37
    0
    C. Less Food Crops were being grown.

    My conclusion, given the paragraph given, is that the Belgians likely made the choice given rubbers value to plant rubber trees instead of food wherever practicable.
  2. 9 January, 10:43
    0
    allowing stockholders to buy shares of stock at prices lower than the market value - TRUE

    Explanation:

    If Auto Mart is trying to pursuit a hostile takeover, it will need to start buying shares from small stockholders (and that increases the price of stocks), and by allowing stockholders to purchase stocks at a price lower than market price, it is making things more difficult for Auto Mart since it will have to spend more money. Besides having to buy more stocks, the market price will also rise, which will result in a very expensive transaction. If it results being too expensive, Auto Mart may desist.
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