Because of Data Limitations, Valuation of Private Firms Often Requires

question 78

True/False

Because of data limitations, valuation of private firms often requires more subjective adjustments than for
public firms.

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Definitions:

Required Return

The minimum expected return an investor demands for an investment, considering its risk and the returns available from other investments.

Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits, providing an income stream to investors.

Growth Rate

The measure of an entity's increase in size, value, or quantity over a specified period, often expressed as a percentage.

Rate Of Return

The rise or fall in an investment's value over a set period, shown as a percentage of the investment's initial expense.