You calculate a closely held company A. Using the same techniques and methods as a publicly held com

You calculate a closely held company

A.           Using the same techniques and methods as a publicly held company

B.           Using the CAPM model

C.           Differently than a publicly held company

D.           By calculating Beta

Which statement is true?

A.           A closely held company usually does not require normalization entries

B.           Requires trend analysis to help determine a capitalization rate

C.           Capitalization rates and discounts rates are exactly the same

D.           Valuation uses only the last yearAc€?cs revenue to determine future revenue

Which statement is false?

               A.           It would be useful to ascertain the future economic forecast

B.           You should examine related party transactions more closely than most other transactions

               C.           Closely held sister companies are generally more risky in a valuation engagement

               D.           All of the above are true

Which statement about beta is true?

        Beta measures the risk of a company relative to the stock market in general

        Beta is the difference between the risk free rate and the market rate

        Beta is typically used in the valuation of a closely held company

               Beta may or may not have to be used in the CAPM

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