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Comparable company approach

EOC Pg 307, Corp Fin.

If you have company A, In the comparable company approach, you find the premium and do you multiply with the stock price of A or fair value of A? I thought since you found the premium based on the comparable stock prices, you will multiply with the A but looks like you will multiply with Fair value. Does not make sense to me.

Any help

please ignore. Looks like this is how CCA works

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