In Valuing Private Businesses,the U

question 71

Multiple Choice

In valuing private businesses,the U.S.tax courts have historically supported the use of which valuation method for purposes of estate valuation?

• A) Discounted cash flow
• B) Comparable company method
• C) Tangible book value method
• D) A combination of a and c
• E) All of the above

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Definitions:

Expected Gain

The anticipated benefit or profit from an investment or action.

Diversification

A strategy of investing in a variety of assets to reduce overall risk.

Expected Gain

The anticipated benefit or profit that arises from a specific action or investment.

Diversification

The process of spreading investment risks by acquiring a wide range of assets within a portfolio.