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Why may this decision not be in the best interests

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Question - A firm has decided to donate $3 million to its local school district to purchase computers for the school's students. The expected benefits from tax savings, reputation, etc... are likely to be $1 million.

(a) Why may this decision not be in the best interests of the firm's common stockholders?

(b) Which group of these stockholders will be hurt more than others? Why?

Reference no: EM132847155

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