1. Whats 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 determination.

2. 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?