1. A tender offer is often contingent upon the:
A. approval of the target firm's board of directors.
B. approval of both the acquirer's and bidder's shareholders during their respective shareholder meetings.
C. acquisition being friendly in nature.
D. bidder obtaining its desired percentage of voting shares in the target firm.
E. approval of the target firm's officers.
2. Which one of these events might cause the biggest challenge to the MM propositions?
A. An increase in the corporate tax rates
B. A decrease in the cost of debt
C. An increase in a firm's unlevered WACC
D. A new law requiring equal lending rates for all borrowers
E. A change in tax laws to treat interest and dividends equally