Elisabeth Rossiter, the single proprietor of Nikopoulos, Inc., a successful manufacturer of advanced microchips for computer gaming consoles, is seeking new long-term capital to finance the growth of her business. The net worth of the company to date is 500,000 CU.
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You are considering buying a 20 percent stake in the company. Why might you be willing to offer Elisabeth more than 100,000 CU for such an investment?