Answer these questions below with short answers ( USE OWN WORDS )
- In your own words what was the movie “Barbarians at the Gate” about?
- Define in your own words “agency problems.” What are agency costs (these are not all monetary in nature)? Give some examples of these costs from the movie “Barbarians at the Gate.”
- How many participants made formal bids for RJR Nabisco? Why do you think that the price per share changed so much from Ross Johnson’s first bid to the price per share of the final bid? How does this video show the need for accurate firm valuation? Do you believe that financial modeling could benefit in the firm valuation process? Explain your position.
- What is fiduciary duty? The final bid from KKR was not the highest bid yet the board of directors chose KKR instead of Ross Johnson’s higher offer? Why do you believe the board went with KKR’s offer and was the board of directors doing their fiduciary duty by doing what was in the best interest of the firms shareholders?