Which of the Following Is the Best Approach to Determine

question 33

Multiple Choice

Which of the following is the best approach to determine the fair value of the non-controlling interest under the fair value enterprise method?

• A) If a control premium is unlikely, use an implied value based on the consideration paid by the parent
• B) Use the market value of the outstanding subsidiary shares (not owned by the parent).
• C) Use a valuation model based on the subsidiary's discounted cash flows.
• D) Use the share price paid by the parent.

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Definitions:

Stereotypical Married Woman

A conventional or oversimplified image or idea of a married woman, often characterized by traditional roles such as homemaker or caregiver.

Housework

The management and maintenance tasks of a household, such as cleaning, cooking, and shopping.

Social Contacts

Individuals or groups with whom one interacts or communicates in a social context.

Self-Esteem

An individual's subjective evaluation of their own worth, including beliefs about oneself.