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Why may decision not be in the best interests of the firm

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A firm has decided to donate $3 million to its local school district to purchase computers for the school's students. The expected benefits from tax savings, reputation, etc... are likely to be $1 million.

Problem (a) Why may this decision not be in the best interests of the firm's common stockholders?

Problem (b) Which group of these stockholders will be hurt more than others? Why?

Reference no: EM132824052

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