Value of the entire business

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An Investor is interested in making a minority investment in a small privately held firm. Because of the nature of the business, she concludes that it would be difficult sell her interest in the business quickly. She believes the discount for lack of marketability to be 25%. She also estimates that if she were to acquire controlling interest in the business, the control premium would be 15%. Based on this information, what should be the discount rate for making a minority investment in this firm? What should she pay for 20% of the business if she believes the value of the entire business to be $1 million.

Reference no: EM131908226

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