Discuss whether the management team is acting in the shareholders’ best interest and explain your answer.
A leading
Income Statement (2023)
Sales $21,800
Cost of goods sold $15,050
Depreciation $4,150
EBIT $2,600
Interest $1,830
Taxable income $870
Taxes (34%) 296
Net income $574
2022 2023
Current assets $3,800 $6,930
Net fixed assets $23,650 $26,800
Current liabilities $2,700 $3,150
In a noteworthy turn of events, Elon Musk, a renowned billionaire, has expressed keen interest in acquiring all outstanding shares of ATOOL at an attractive price of $30 per share. Despite the enticing offer, the management team has promptly declined Musk's proposal, opting instead to deploy a series of strategic measures aimed at foiling the acquisition bid. Discuss whether the management team is acting in the shareholders’ best interest and explain your answer.
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