Alt Investment cfa l1

Why an investor add a premium to the value of the company bcoz of controlling interest??

They get to set dividend policy.

Can you pls elaborate , it will help

If you own less than 50% of a company, then someone else sets the dividend policy. If you want dividends and they don’t want to pay them, or you don’t want dividends and they want to pay them, you’re stuck.

If you own more than 50% of the company, you get to decide whether or not it will pay you dividends, and, if so, how much. That’s worth something.