(1) What is block ownership? How does it affect corporate governance?
(2) Briefly explain how regulatory agencies and legal systems affect corporate governance.
You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that is seeking to increase its value. The company’s CEO and founder, Mia Kulpa, has asked you to estimate the value of two privately held companies that KFS is considering acquiring. But first, the senior management of KFS would like for you to explain how to value companies that don’t pay any dividends.