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A few years ago,a clothing manufacturer was expanding rapidly,so the CEO hired several executives from large corporations.Unfortunately,the new executives clashed with the current executives regarding business strategy.The CEO explained: 'We ended up with an old team and a new team and they weren't on the same wavelength.' Identify the source(s)of conflict in this situation and identify two strategies to minimize this conflict in the future.
Exchange Ratio
The rate at which one asset or security can be exchanged for another in a merger, acquisition, or other financial transactions.
Warrant
A security that grants the holder the right to buy a company's stock at a specific price before a certain date.
Convertible Debentures
A type of bond that can be converted into a predetermined number of shares of the issuing company’s stock at certain times during its life, usually at the discretion of the bondholder.
Conversion Value
The monetary value of a convertible security (such as a convertible bond) if it were converted into a predetermined number of shares of common stock, generally at the discretion of the holder.
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