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Alfred Sautin wants to invest in Dieciring, Inc. a private company. Based on earning multiples of similar publicly traded forms, Alfred estimates the value of the private company stock to be $19 per share. he plans to acquire a majority of the shares in the company. The expected control premium is 11 percent. He estimated the marketability discount for such a firm to be 14 percent. The discount for the key person, one of the founders who ay leave the firm upon Alfred's control of the firm, is 16%. What price should he be willing to pay for these shares?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92682107

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