QUESTION NO. 3 (20 MARKS) a) Explain the theory of corporate control. How can target firms resist takeover attempt? Why do such deals fail? Give some examples from Pakistan. b) Compare and contrast the "economic model of the firm derived from the microeconomic theory with Jensen and Meckling's nexus of contract" model of the firm? What are agency costs of outside equity and debt? QUESTION NO. 3 (20 MARKS) a) Explain the theory of corporate control. How can target firms resist takeover attempt? Why do such deals fail? Give some examples from Pakistan. b) Compare and contrast the "economic model of the firm derived from the microeconomic theory with Jensen and Meckling's nexus of contract" model of the firm? What are agency costs of outside equity and debt