Question: Please help! please read the question before answering. I will upvote for clear step by step formula and calculation. thank you! You have valued a

Please help! please read the question before answering. I will upvote for clear step by step formula and calculation. thank you!

You have valued a business, using discounted cash flow models, at $250 million for a private sale. The business, which does make money, had revenues of $200 million in the most recent year. (The average firm has revenues of $10 million.) How much of a liquidity discount would you apply to this firm:

a. Based on the Silber regression?

b. Based on correcting the average discount (25%) for the size of the firm?

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