Briefly Explain How the Formulas That Are Used for Valuing

question 57

Essay

Briefly explain how the formulas that are used for valuing common stocks can also be used to value businesses.

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Definitions:

Reluctant

Feeling or showing aversion, hesitation, or unwillingness.

Workforce Diversity

The range of differences among individuals in an organization, including but not limited to race, gender, age, national origin, disability, and sexual orientation.

Legislation

Laws and statutory requirements enacted by a legislative body or the process by which such laws are created and implemented.

Privatization

The process of transferring ownership of a business, enterprise, or public service from the public sector to the private sector.