QUESTION 2 (25 MARKS) You're the CEO of a firm, and you're thinking of making a deal to have your company purchase another one. CEOs are in charge of developing strategy and making ultimate M&A decisions. As a CEO, you also interact with your CFOs, who may assist you in identifying acquisition candidates, doing due diligence, arranging finance, and following up on the deal. You believe the price is too excessive, and you will become the CEO of the merged firm. You anticipate a rise in your income and status. (a) Describe the nature of the agency conflict that develops from the aforementioned scenario between owners and managers. (15 marks) (b) Discuss how a conflict of interest relates to ethical issues. (10 marks)