Suppose now the private benefit b is the result of extraction and assume that V = 1. In particular, once in control B can extract a percentage e [0, 1] of the firm value to generate private benefits. However, extraction is inefficient in the sense that reducing firm value by e only yields private benefits of b = e 1 2 . Given some post-takeover stake [ 1 2 , 1] owned by B, what amount does B optimally extract? Also compute the exact values of extraction at = 0.5 and at = 1