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You are interested in ins investing in a private company. Based on earnings multiples of similar publicly traded firms, you estimate the value of the private company's stock to be $ 13.44 per share. You plan to acquire a majority of the shares in the company . The expected control premium is 12 percent, while the marketability discount for such a firm is 15 percent. The discount for the key person, one of the founders who may leave the firm upon your control of the Firm, is 15 percent. What price should you be willing to pay for these shares? (Round final answer to two decimal places.)

Macroeconomics, Economics

  • Category:- Macroeconomics
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