Which of the following is true about a golden parachute?
a. It refers to the potential defenses against a hostile takeover attempt.
b. It refers to an unsolicited takeover attempt.
c. It refers to a takeover target firm's management repurchasing large blocks of stocks at a premium to avoid a potential takeover.
d. It refers to a takeover target firm selling additional stock to existing shareholders, increasing the shares needed for a viable takeover.
e. It refers to a lucrative financial settlement given to exiting executives of a taken over firm.
Answer: E