4. Acompany intends to sell one of its larger business units to a strategic buyer. The companys...

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4. Acompany intends to sell one of its larger business units to a strategic buyer.

The company’s controller is concerned because the salewould result in overcapacity of 25 percent in the company’s information technology (IT) center.

He proposes that the company be compensated for these stranded costs by an increase in the sale price. Discuss what reaction you expect from the buyer.

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Valuation Measuring And Managing The Value Of Companies University Edition

ISBN: 978-1118873731

6th Edition

Authors: Mckinsey & Company Inc. ,Tim Koller ,Marc Goedhart ,David Wessels

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