Identifying agency problems, costs, and resolutions You are the CEO of Nelson

Corporation, and the current stock price is $27.80. Pollack Enterprises announced

today that it intends to buy Nelson Corporation. To obtain all the stock of Nelson

Corporation, Pollack Enterprises is willing to pay $38.60 per share. At a meeting

with your management, you realize that the management is not happy with the

offer, and is against the takeover. Therefore, with the full support of your management

team, you are fighting to prevent the takeover from Pollack Enterprises. Is the

management of Nelson Corporation acting in the best interest of the Nelson Corporation

stockholders? Explain your reasoning.