Sisters haruhi and mikuru are the joint owners of seto, Ask an Expert

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Sisters Haruhi and Mikuru are the joint owners of Seto Corporation; each owns 50% of the company. The value of the corporation is $450,000 and its risk in terms of σ is 0.3. Haruhi would like to buy Mikuru out and offers her cash, equivalent to Mikuru’s share, or a note for $300,000 payable by Seto Corporation after 4 years. The riskless rate is 2.8%. Find the value of the cash offer, and the value of the note. Should Mikuru take the cash or the note? Take the note.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91591429

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