As you know, in a hostile takeover, a bid is made to the current stockholders to buy their shares of stock and control the company (even against the Board’s wishes). Existing management may have different goals than the new shareholder’s goals. Suppose you hold 35% of the investee’s voting shares, but the investee refused your repeated refusal to install a new board member, or constantly shoot down your suggestions. In this case, would the fair value method be more appropriate? What would be your supporting argument if you answered yes?

Answer rating: 100% (QA)

Yes Fair Value Method would be more appropriate Explanation Genera... View the full answer