Solution for QID #2775: ABC Ltd, an Australian based firm is a large manufacturing f | StudyHelpMe

ABC Ltd, an Australian based firm is a large manufacturing firm with 25 subsidiaries which operates from different parts of the world. On 30th July 2018, Birim Equity fund acquired an additional 25% of shares of ABC Ltd resulting in its total shareholding of 48%. The Herald Sun in its business segment described the acquisition as one which makes Birim Equity a dominant shareholder. How would this situation affect agency cost for a prospective investor if a) Birim Equity is separated from management? b) Birim Equity is not separated from management?