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:

Financial Data

Numerical information reflecting the financial status of an entity, including income, expenses, assets, liabilities, and equity details.

Income Statement

A financial report that summarizes a company's revenues, expenses, and profits over a specific period, usually a fiscal quarter or year.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific time, showing assets, liabilities, and equity.

Average Sale Period

The average time it takes for a product to be sold after it's been produced or acquired by the business.