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LOS n: Describe alternative valuation methods for closely held companies and distinguish among the bases for the discounts and premiums for these companies.
Q1. Which of the following is a disadvantage to using the comparables approach to valuing investments in closely held companies?
A) Cost to replace assets may not reflect current value.
B) The benchmark value used may be mispriced or difficult to establish.
C) It is difficult to determine the appropriate discount rate.
Q2. Regarding closely held companies, the valuation adjustment, due to the lack of a public market for the shares, is called a:
A) marketability premium.
B) marketability discount.
C) minority discount.
Q3. Approaches commonly used in the valuation of closely held companies include all of the following EXCEPT the:
A) comparables approach.
B) fundamental value approach.
C) cost approach.
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发表于 2009-2-28 17:56
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