Important Issues That One Must Consider in Valuing Young Private

question 8

Multiple Choice

Important issues that one must consider in valuing young private firms include:

• A) whether key people remain in the firm, the amount of dividends that one may receive in the coming years, and whether a controlling ownership interest or a minority interest is being valued.
• B) the difficulty in valuing young, rapidly growing companies in contrast to mature, stable companies, the amount of dividends that one may receive in the coming years, and whether a controlling ownership interest or a minority interest is being valued.
• C) the difficulty in valuing young, rapidly growing companies in contrast to mature, stable companies, whether key people remain in the firm, and whether a controlling ownership interest or a minority interest is being valued.
• D) whether the key people remain in the firm, the pretax operating cash flows generated by the firm in the coming years, and whether a controlling ownership interest or a minority interest is being valued.

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Definitions:

New France

The area colonized by France in North America during a period extending from the exploration of the Saint Lawrence River by Jacques Cartier in 1534 to the cession of New France to Spain and Britain in 1763.

Women

Female human beings, who have historically played various roles across societies, facing distinct challenges and contributing to the cultural, political, and social development of human civilization.

New France

The area colonized by France in North America during the 16th to 18th centuries, including parts of present-day Canada and the United States.

Indian Allies

Native American groups that formed alliances with European colonial powers or American settlers during various conflicts throughout North American history.