In defending against a hostile takeover, the strategy involving the payment of a large,debt?financed, cash dividend is the __________strategy.
A) leveraged recapitalization
B) white knight
C) shark repellent
D) golden parachute

Question

Quizplus · Accepted Answer

The strategy involving the payment of a large, debt-financed, cash dividend is known as leveraged recapitalization. This involves taking on a significant amount of debt in order to pay a one-time cash dividend to shareholders, making the company less attractive to potential acquirers.

In Defending Against a Hostile Takeover, the Strategy Involving the Payment