Investment banking firm to develop defensive strategy

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Reference no: EM132045960

1. A company seeking to fight off a hostile takeover might employ the service of an investment banking firm to develop a defensive strategy. What are the implications of this type of strategy? Is it in the best interest of shareholders?

2. Suppose a firm has a retention ratio of 39 percent and net income of $5.4 million. How much does it pay out in dividends?

3. Suppose a firm has a retention ratio of 46 percent and net income of $8.0 million. How much does it pay out in dividends?

Reference no: EM132045960

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