Catherine has been approached by her brother Dirk, who has recently started a new corporation with their brother David. Thompson Brothers Inc. manufactures specialized equipment to aid in cleaning the underside of boats without removing them from the water. Dirk and David had been operating Thompson Brothers as a partnership for five years. The expansion to a corporation has required more money than they expected, and they have asked Catherine to purchase shares in their corporation. Catherine is trying to determine a fair price for the shares but is having difficulty. She has asked you to explain why she is unable to find out the current market price for Thompson Brothers Inc.
1. What might help Catherine determine a fair price?
2. What questions should you advise Catherine to ask her brothers?