Question: A computer software company is highly profitable, and Microsoft has indicated it would like to acquire the firm. Management has no intention of selling. The

A computer software company is highly profitable, and Microsoft has indicated it would like to acquire the firm. Management has no intention of selling. The firm's 1 million shares (400,000 of which are owned by management) are trading for $120, and Microsoft has indicated it will tender $130 to shareholders.

A. Compare and contrast 5 methods of financing the continuing operations of an enterprise.

B. Critically discuss any forms of financing that maybe used by management to fight off this hostile takeover, outlining the tax implications.

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