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Financial Management: Theory & Practice

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter22: Mergers And Corporate Control

Section: Chapter Questions

Problem 9MC

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Echo Farm Supply's stock price is currently trading at $35 per share. The consensus among market analysts is that the stock should trade for $27.5
per share, given the amount, timing, and riskiness of the company's dividends. Is Echo Farm Supply more or less likely to receive a hostile takeover
bid?
O More likely
OLess likely
4

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