Summary
The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...
Richard S. Gesoff v. IIC Industries Inc.
PDF, Size: 154 KB
See Also
‘9/11 Defense’ Fails to Justify Unfair Merger
A “9/11 defense” fails to obviate unfair merger price, and valuation highlights difficulties inherent in assessing specific and small-company risk in overseas markets.
Small-Stock and Company-Specific Risk Premia Considered in Fair Value Analysis
The Delaware Court of Chancery determined that a company-specific risk premium should not be added when computing the cost of capital when there is no financial analysis supporting the company-specific risk. Furthermore, the court held that a small stock ...