Question
The breakeven valuation of Talltree is found to be $44.74M. Talltree estimated that the total valuation of Newco is $50M. What is your investment recommendation
The breakeven valuation of Talltree is found to be $44.74M. Talltree estimated that the total valuation of Newco is $50M. What is your investment recommendation for Talltree?
Group of answer choices
You recommend LP to accept the investment, as the LP valuation is higher than the LP cost.
You recommend LP to accept the investment, as the LP cost is higher than the LP valuation.
You recommend LP to reject the investment, as the LP cost is positive.
You recommend LP to reject the investment, as the breakeven valuation is lower than the total valuation.
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