1. What are some of the defensive tactics that firms use to thwart takeovers?
2. How can a firm restructure itself? How do these methods differ in terms of ownership?
3. What is a firm’s stock worth today that paid $2 in dividends last year? Assume that it will have a 25% growth rate next year and then a rate of constant negative growth rate, 7%. Discount rate is 10%. How much will the investors receive in dividends?