What is the appropriate way to determine a takeover price

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Reference no: EM133371284

Assignment:

Read the case study attached below and then answer the questions that follow after the case studies in the file

1. What's the appropriate way to determine a takeover price? (Consider the application of conventional valuation methodology, the negotiating process in which the parties involved are not subject to duress, and an impartial arbiter's (i.e., a judge) determination)

2. Do you believe this court ruling is appropriate considering the facts of the case? Explain your answer.

3. Should a freely negotiated purchase price always be used as the appropriate valuation of a target firm's shares assuming the process was fair? Explain your answer.

4. How does this case illustrate the shortcomings of discounted cash flow (and other methodologies) in valuing a business?

Reference no: EM133371284

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