barbarians at the gate

barbarians at the gate - the movie What actions can a firm...

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1. Did the board of director's violate it fiduciary duty when it accepted KKR's lower priced bid of $109 per share rather than Management's (Ross Johnson's) offer of $112 per share? Support your answer. (Keep in mind whose interest the Board should look after!) Overall what grade would you give RJ Nabisco's Board of Directors, and why? Your answer should address the Board's strengths and deficiencies. 2. Describe the corporate governance role played by investment banking firms in the movie Barbarians at the Gate. Did either side (Henry Kravis or Ross Johnson) act unethically? If so how? What principle-agent conflicts led to Ross Johnson's termination at the end of
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Unformatted text preview: the movie? What actions can a firm take to minimize these conflicts? 3. In the beginning of the movie Ross Johnson was treating his clients with various perks such as watches, golf, …. Do you think this is ethical? In many foreign countries paying bribes is a fact of life. The Foreign Corrupt Practices act forbids U.S. companies from paying bribes to get business in foreign countries. This law may put U.S. firms at a competitive disadvantage. Is the law is justified? Support your answer. 4. RJR Nabisco is a corporation; KKR is a partnership. Henry Kravis obviously leads a more lavish lifestyle than Ross. How does organizational form affect agency costs?...
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