Explain how this donation hurts the stockholders

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Suppose a Chicago firm donates $5 million to the local school district to help the school buy new computers. Assume also that the benefits from a point of view of PR, reputation, taxes amounts to $3 million in total. Explain how this donation hurts the stockholders in terms of the stock return (which as you know, is based on dividends and capital garins). Next, explain whether some stockholders will be hurt more than others.

Reference no: EM131447404

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