1. Describe how the interaction between buyers and sellers affects the market value of a firm, and explain how that value can subject a firm to the market for corporate control.

2. You are required to present your positions using empirical evidence for OR against:

(1) Whether Corporate Mergers create value, and if so, how large are the gains to shareholders of bidding and target firms?

(2) Does opposition to takeover bids by the managers of target firms reduce shareholder wealth?

(3) Is shareholder wealth affected by proxy contests?

(4) Does antitrust opposition to takeovers impose costs on merging firms?