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Topic: Business
Number of pages / Number of words: 5 / 1236
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The value of the firm will be V* and the perks consumed, F*. The maximum a potential buyer (outsider) of equity in the business will be willing to pay, provided the perk consumption is guaranteed to remain the same, will be V*. after a fraction of the firm has been sold be a, then the outsider now owns (1-a), (0

As the diagrams shown below, the insider will move to point A to achieve the highest available indifference curve, with perks F0 and wealth V0...


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The value of the firm will be V* and the perks consumed, F*. The maximum a potential buyer (outsider) of equity in the business will be willing to pay, provided the perk consumption is guaranteed to remain the same, will be V*. after a fraction of the firm has been sold be a, then the outsider now owns (1-a), (0

As the diagrams shown below, the insider will move to point A to achieve the highest available indifference curve, with perks F0 and wealth V0...


Essay fragment

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