Reading 34: The Equity Valuation Process- LOS h～ Q1-3 important, valuation, discount, receive, position

wzaina

 

LOS h: Discuss the role of ownership perspective in valuation.

Q1. An ownership perspective can be important for an analyst determining the value of a share position. A block of shares that is large enough to direct the future actions of the firm should receive a:

A)   premium for control.

B)   a discount for size.

C)   premium for block-size.

 

Q2. An ownership perspective can be important for an analyst determining the value of a share position. A discount for lack of marketability would most likely be assigned to a position of shares in which of the following?

A)   A non-publicly traded firm.

B)   A very large publicly traded firm.

C)   A bankrupt firm.

 

Q3. An ownership perspective can be important for an analyst determining the value of a share position. A block of shares that is very large in relation to the daily trading volume should receive a:

A)   discount for lack of liquidity.

B)   premium for block-size.

C)   a brokerage discount for volume.

danforth

dd

goodthingzxy

thanks

annyyu

re

gerryzhang

thx

vanisacarlton

thanks

沙胖胖

thanks

tomathome

aab

duo1115

see

saint_zhu

discount