liqdisc - Profitable firm Unprofitable firm Revenues...

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Inputs Base Discount for firm with $ 10 million rev 25% Revenues= 209 Size of block as % of stock outstanding = 100% Positive or Negative Earnings = 1 Output Illiquidity Discount 19.10%
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Inputs Values for Private company Revenues 209 Positive or Negative Earning 1 Cash/Value 3% Trading Volume/ Value 0% Output Illiquidity Discount = 11.78%
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5 10 15 20 25 30 35 40 45 50 100 200 300 400 500 1000 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Figure 24.1: Illiquidity Discounts: Base Discount of 25% for profitable firm with $ 10 million in revenues
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Unformatted text preview: Profitable firm Unprofitable firm Revenues Discount as % of Value Revenues Profitable firmUnprofitable firm 5 26.26% 34.21% 10 25% 33.15% 15 24.25% 32.52% 20 23.71% 32.07% 25 23.29% 31.72% 30 22.94% 31.42% 35 22.64% 31.17% 40 22.39% 30.96% 45 22.16% 30.77% 50 21.95% 30.59% 100 20.59% 29.45% 200 19.19% 28.27% 300 18.35% 27.57% 400 17.75% 27.06% 500 17.28% 26.67% 1000 15.79% 25.42%...
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This note was uploaded on 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.

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liqdisc - Profitable firm Unprofitable firm Revenues...

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