What is your bidding strategy

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Assume that you are among a number of firms biding to takeover ABC,a firm that is currently having financial problems.Your consultant inform you that ABC is worth between zero and $1billion,all values equally likely,under current management.Also you know that whatever the the true curent value is ,ABC will be worth 50% more under your management.

(i) What is your bidding strategy

(ii) Assuming that you win the auction,what is your profit loss.

Reference no: EM132025439

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