Small-Stock and Company-Specific Risk Premia Considered in Fair Value Analysis

Business Valuation Update BVLaw
Legal and Court Case Update
May 18, 2006

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6719 Offices of Holding Companies, NEC
551112 Offices of Other Holding Companies
shareholder dissent/oppression
economic damages & lost profits
Gesoff v. IIC Industries Inc., et al.
No. 19473 (Del. Chan. 2006)
US
State Court
Delaware
Court of Chancery
Jessica Zeldin
David N. Fuller, ASA, Neil J. Beaton
Lamb

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 ...

See Also

Gesoff v. IIC Industries Inc., et al.

Full Text of Court Cases
May 18, 2006

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 ...

This article also appears in:
The Comprehensive Guide to Economic Damages, Seventh Edition