Question 3 [30%] Two private companies, South Limited and North Limited, each have 5 shareholders, say, Shareholders A, B, C, D and E. Shareholders of South Limited have equal shareholding (i.e., 20 shares each). Shareholders V, W, X, Y and Z of North Limited hold 50 shares, 44 shares, 3 shares, 2 shares and 1 share, respectively. Each of the companies is worth $100 million. Now, Shareholder A of South Limited wants to transfer 1 share out of the 20 shares he holds to one of the existing shareholders. Coincidentally, Shareholder V of North Limited wants to dispose 1 share out of the 20 shares he holds. All the other shareholders (i.e., W, X, Y and Z) are interested. In both cases, the disposition should be at a fair (justifiable) value. It is assumed that shareholder who acquires the share in either case will pay a price that they consider fair. a) What should be the value of the South Limited share to each of the other shareholders? Briefly explain? [10%] b) What should be the value of the North Limited share to each of the other shareholders? Briefly explain? [15%] c) What assumption(s), if any, have you made? [5%]