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With outside shareholders amounting into a mere 4%, Kohler Co. is evidently mindful of see it here the merits of becoming a privately held corporation.
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We also identified there to generally be no substantial alter within the ownership percentage of Those people supporting the recapitalization prepare. Consequently, we used the perpetuity progress system when calculating Kohler Co.’s Discounted Dollars Flows.
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What assumptions can you utilize to arrive at close to the share price of $273,000 that was approximated by the dissenting shareholders? Demonstrate how these assumptions effects your valuation.