A). If the minority price for a single share of stock of a company is $20, there are 500,000 shares of stock, and a person offers to buy the entire company for $14.5 million, what is the controlling interest premium being offered? (B) Based on the same information, what is the minority or non-controlling interest discount for this company?
A). If the minority price for a single share of stock of a company is $20, there are 500,000 shares of stock, and a person offers to buy the entire company for $14.5 million, what is the controlling interest premium being offered? (B) Based on the same information, what is the minority or non-controlling interest discount for this company?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1(A). If the minority price for a single share of stock of a company is $20, there are 500,000 shares of stock, and a person offers to buy the entire company for $14.5 million, what is the controlling interest premium being offered? (B) Based on the same information, what is the minority or non-controlling interest discount for this company?
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