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With respect to dividends, the following represents the chronological order of events from earliest to latest:

When the cause of community-acquired pneumonia (CAP) is bacteria, which of the following is the most common pathogen, with about 50% of people with CAP requiring hospitalization?

When a firm repurchases shares, the supply of shares is ________, but at the same time, the value of the firm’s assets ________.  

Brutus Co. has nine million shares outstanding, generates free cash flows of $10 million each year and has a cost of capital of 7%. It also has $50 million of cash on hand. Managers at Brutus are deciding whether to distribute the $50 million in cash to shareholders through a repurchase or invest the $50 million in a project that generates $4 million in free cash flow in perpetuity. Should mangers invest in this project or repurchase shares?

You work for a levered buyout firm and are evaluating a potential buyout of TTUN Inc. TTUN’s stock price is $20, and it has 4 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 80%. You are planning on doing a levered buyout of TTUN and will offer $23 per share for control of the company. Will shareholders sell their shares and how much equity will you own if improvements are made?

For a hostile takeover to succeed, the acquirer must appeal to the target shareholders; this is usually done through ________.

A rights offering that gives existing target shareholders the right to buy shares in either the target or an acquirer at a deeply discounted price once certain conditions are met is called a ________.

Savings that come from combining the marketing and distribution of different types of related products are called ________.

You work for a levered buyout firm and are evaluating a potential buyout of TTUN Inc. TTUN’s stock price is $20, and it has 4 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 40%. You are planning on doing a levered buyout of TTUN and will offer $25 per share for control of the company. Will shareholders sell their shares and how much equity will you own if improvements are made?

Brutus Co. expects an EPS of $10 per share next period. Currently, their plowback ratio is 0.5. However, the company has the opportunity to finance a new project that will earn an ROE of 12% by cutting its dividend to $2.50 per share. If the Brutus Co’s expected stock return is 9%, should they cut dividends to make the new investment?