Question: Consider the same setup as in Example 16.4, except that now there is an additional possibility, Structure 3, where Talltree would receive 6M shares of

Consider the same setup as in Example 16.4, except that now there is an additional possibility, Structure 3, where Talltree would receive 6M shares of CP with $12M APP.

(a) Perform a sensitivity analysis for the LP valuation of Structure 3 versus Structure 2 as a function of total valuation.

(b) Suppose that total valuation is $100M. For what number of shares, Z, in Structure 3, should Talltree be indifferent between Structures 2 and 3?


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