questions 8&9

8. Companies always need money to grow, expand, purchase supplies and inventory, and many more. When companies look for funds they look internally first before they pursue external sources. a) What is the internal source of capital? b) Explain the four reasons, from class, why they pursue internal sources first? (10pts) 9. Suppose you own stock in Bloomin' Brands (the company that owns Outback Steakhouse) and its current stock price is $21.50. Darden Restaurant has just offered to buy Bloomin Brands and is willing to pay $27.95 per share to acquire all the outstanding stock. Bloomin Board of Directors and top management are refusing to accept Darden's offer because they don't want to sell the company. Is management and the Board acting in the best interest of shareholders? Why or why not? (5pts) 8. Companies always need money to grow, expand, purchase supplies and inventory, and many more. When companies look for funds they look internally first before they pursue external sources. a) What is the internal source of capital? b) Explain the four reasons, from class, why they pursue internal sources first? (10pts) 9. Suppose you own stock in Bloomin' Brands (the company that owns Outback Steakhouse) and its current stock price is $21.50. Darden Restaurant has just offered to buy Bloomin Brands and is willing to pay $27.95 per share to acquire all the outstanding stock. Bloomin Board of Directors and top management are refusing to accept Darden's offer because they don't want to sell the company. Is management and the Board acting in the best interest of shareholders? Why or why not? (5pts)