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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
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 manage- ment 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 Corpo- ration stockholders? Explain your reasoning
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