You are the CEO of Nelson Corporation, and the current stock price is $27.80. Pollack Enterprises announced
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Question:
You are the CEO of Nelson Corporation, and the current stock price is $27.80. Pollack Enterprises announced today that it intends to buy Nelson Corporation. To obtain all the stock of Nelson Corporation, Pollack Enterprises is willing to pay $38.60 per share. At a meeting with your management, you realize that the management is not happy with the offer, and is against the takeover. Therefore, with the full support of your management team, you are fighting to prevent the takeover from Pollack Enterprises. Is the management of Nelson Corporation acting in the best interest of the Nelson Corporation stockholders? Explain your reasoning
Tax Calculation | ||
Range of taxable income | Base Tax | Marginal rate x amount over base bracket |
0-50,000 | 0 | 15% x amount over 0 |
50,000-75,000 | 7500 | 25% x amount over 50,000 |
75,000-100,000 | 13750 | 34% x amount over 75,000 |
100,000-335,000 | 22250 | 39% x amount over 100,000 |
335,000-10,000,000 | 113900 | 34% x amount over 335,000 |
10,000,000-15,000,000 | 3400000 | 35% x amount over 10,000,000 |
15,000,000-18,333,333 | 5150000 | 38% x amount over 15,000,000 |
over 18,333,333 | 6416667 | 35% x amount over 18,333,333 |
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