The Value of Stock That Is Not Publicly Traded May

question 15

Multiple Choice

The value of stock that is not publicly traded may be determined by considering

• A)the nature and history of the business.
• B)earning capacity.
• C)dividend-paying capacity.
• D)all of the above

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Definitions:

Machine-Hours

A measure of machine use or production time calculated in hours.

Relevant Range

This is the range of activity within which assumptions about variable and fixed cost behavior are valid.

Differential Cost

The cost difference between two alternative decisions.

Model 240

A specific version or design of a product, indicated by the model number 240.