Which of the Following Methods Is Used in Combination with Net

question 1

Multiple Choice

Which of the following methods is used in combination with net asset value method in the absence of valid market comps?

• A) capitalization of earnings method
• B) guideline transaction method
• C) dividend payout method
• D) earnings payout method

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Definitions:

Average Total Cost

The total cost divided by the quantity of output produced; it includes all variable and fixed costs.

Minimum Efficient Scale

The smallest scale of production at which long-run average total costs are minimized.

Long Run Average Cost Curve

A graphical representation that shows the lowest average cost at which any given level of output can be produced in the long run.

Decreasing-cost Industry

An industry where the costs of production decrease as the industry grows due to economies of scale.