Prove that an outsider will not pay more than ((1-alpha)) times the value he expects the firm

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Prove that an outsider will not pay more than $(1-\alpha)$ times the value he expects the firm to have-that is, he will not pay the value $(1-\alpha) V^{*}$, but only $(1-\alpha) V^{0}$, for the fraction $(1-\alpha)$ of the shares.

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Theoretical Foundations Of Corporate Finance

ISBN: 97999

1st Edition

Authors: Joao Amaro De Matos

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Question Posted: May 22, 2024 02:01 AM

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Prove that an outsider will not pay more than ((1-alpha)) times the value he expects the firm

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Theoretical Foundations Of Corporate Finance

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