Question: Why is entrenched management potentially harmful to shareholders? MINI CASE You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that

Why is entrenched management potentially harmful to shareholders?

MINI CASE

You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that is seeking to increase its value. KFS has asked you to estimate the value of two privately held companies that KFS is considering acquiring. But first, the senior management of KFS would like for you to explain how to value companies that don’t pay any dividends. You have structured your presentation around the following questions.

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