Agency Issues

Agency Issues - Write a four paragraph answer, citing the...

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Write a four paragraph answer, citing the text, to – Suppose you own stock in a company. The current price is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company’s management immediately begins fighting off this hostile bid. Is management acting in the shareholders’ best interests? Why or why not? Respond to at least two of your fellow students’ postings. Agency Issues A company that is interested in pursuing my company at a higher price than what is required tends to have an agenda beyond what the company’s current standing is. According to the text, it is uncommon but possible that an organization may pursue another company to increase the size of the company, demonstrate corporate power or remove the existing management. A company’s managerial staff should want to protect the interest of its stockholders, but at the same time maintain job security. Management goals should be to increase stock prices and secure the security of the company.
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Agency Issues - Write a four paragraph answer, citing the...

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