1. Which of the following parties, according to academic research, is the less likely to benefit from takeover activity?
a) Merchant banks and other financial institutions.
b) Target company shareholders.
c) Acquiring company shareholders.
d) Management of the acquiring company.
2. A company wants to return funds without signalling that all future dividends will be raised abnormally. Which of the following is the simplest method to adopt?
a) Interim dividends.
b) Special dividends.
c) Share buy-backs.
d) Scrip dividends.