Entity A holds a large portion of Entity B's stock. The market value of the stock is $50 per share. Because of the large block of shares that Entity A wants to sell, Entity A would have to accept a discount of $5 per share to sell them all (a blockage factor). What is the fair value of the shares that Entity A holds (for each share)?

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The Answer of Entity A holds a large portion of Entity B's stock. The market value of the stock is $50 per share. Because of the large block of shares that Entity A wants to sell, Entity A would have to accept a discount of $5 per share to sell them all (a blockage factor). What is the fair value of the shares that Entity A holds (for each share)?

Entity a Holds a Large Portion of Entity B's Stock