Two analysts are discussing shareholder defenses against hostile takeovers. Alice states, “It is positive for shareholders that the board has shown a willingness to buy back shares from holders who may be in a position to effect a hostile takeover of the firm at less than its long-term value to shareholders.” Bradley states, “Firms that are likely takeover targets should offer valuable exit packages in the event of a hostile takeover because they are necessary to recruit highly talented top executives, such as the CEO.” From the perspective of good corporate governance, are these statements correct?

A.Both statements are correct.

B.Neither statement is correct.

C.Only one of the statements is correct.